NEO price analysis: NEO/USD up 4.5%, but the trend remains bearish

• NEO/USD upside is capped by 50-DMA.
• Critical support is created by $30.00.

NEO, the 13th largest coin, is trading at $33.53 to press time, with the long-term downside bias. The coin is unchanged on a daily basis, but 4.5% higher since the beginning of Tuesday. NEO, also knows as “Chinese Ethereum” has a market value of $2.1B and an average trading daily volume at $95M.

NEO’s technical picture

NEO/USD recovery of $34.10 proved to be short-lived as the coin is capped by 200-SMA (4-hour chart). Fresh selling interest located on approach to this level, pushed the price lower, mitigating positive momentum.

On a daily chart, NEO stays under 50-DMA, which effectively caps the upside since May 12 and creates a long-term sloping trendline. A sustainable movement higher is needed to break the bearish sentiment and bring $40.00 into focus. Once this area is cleared, the upside may be extended towards $44.27 (previous low of 2018).  

On the downside, the support comes at $31.20 (Asian low). Once it is cleared, the downside may be extended towards the critical $30.00 and $27.00. That’s where new buyers are likely to appear and trigger the recovery.

NEO/USD, 4-hour chart