Search ForexCrunch
  • NEO is up more than 9% on a daily basis, but facing significant resistance hurdles.
  • The NEO/USD chart outlook is positive but a break from the range resistance is essential for further upside movement.

NEO has formed a sustained divergence from the declines that started at the beginning of August. NEO price traded slightly above $33.00 on August 1. However, the market turned bearish and digital assets across the market in the last couple of weeks recorded huge declines. NEO/USD plunged to trade lows of $13.5 before recovering slightly above $14.50.

The price is, however, still range bound between the upper limit at $17.51 and the lower limit of $15.49. The trading today has been very progressive with NEO rising over 9% on the day. The 61.8% Fib retracement level with the previous swing high of $19.01 and a low of $13.72 at $16.99 limited the gains during Thursday trading sessions. NEO corrected lower but the trendline support which also coincides with the 38.2% Fib level stopped the slide.

NEO embarked on yet another uptrend on Friday above the 61.8% Fib level. However, it is still range bound at the upper limit at $17.51. Technical indicators on the chart are sending viable positive signals but the selling pressure at this level is proving to be stubborn. NEO must clear the current resistance for it to test the upper supply zone at $19.01 and recoil above $20.00.

A short-term support is formed at $17.50 but the 38.2% Fib level support is a stronger anchor at $17.74. A couple of other support lines will be provided by the 50 SMA and the 100 SMA respectively.

NEO/USD 1-hour chart