NEO price analysis: NEO/USD up 7.8%, but the upside is limited

• NEO/USD is capped by 200-SMA on the intraday level.
• Local support is created by $33.50-60 area.

NEO, the 13th largest coin, is trading at $34.80 to press time, with the long-term downside bias. The coin has gained 7.8% on a a daily basis and 6% higher since the beginning of Wednesday, becoming a clear market leader. NEO, also knows as “Chinese Ethereum” has a market value of $2.2B and an average trading daily volume at $119M.

NEO’s technical picture

On the intraday level, NEO/USD recovery is capped by $35.00 – $35.20 areas (strengthened by 200-SMA, 1-hour chart) Fresh selling interest located on approach to this level, is likely to push the price lower, mitigating positive momentum. However, if it is cleared the upside may be extended towards $36.00

On a daily chart, NEO stays under 50-DMA (currently at $37.09), which limits the upside since May 12 and creates a long-term trendline. A sustainable movement higher will break the bearish trend and bring $40.00 into focus. Once this area is cleared, the $44.27 (previous low of 2018) will come into focus.

On the downside, the support is seen at $33.60-50 (this area includes both 50 and 100-SMA, 1-hour chart). Once it is cleared, the sell-off may be extended towards critical $30.00 and $27.00. That’s where new buyers are likely to appear and trigger the recovery.

NEO/USD, 1-hour chart