- NEO price is inside a significant downtrend on the daily chart.
- The digital asset needs to hold $13.87 critical support level to avoid further downside price action.
NEO is trading at $13.86 inside a massive downtrend after peaking at $25.85 on September 18. On October 21, the digital asset seemed to be recovering while establishing two higher lows and a higher high. However, NEO’s price eventually dropped below the 100-SMA on October 28, re-confirming the downtrend.
NEO price prediction: The technical picture
On the daily chart, NEO price is right where the 200-SMA stands, at $13.87. This critical support level needs to be defended to avoid slipping further. Bulls have a positive indicator in their favor. The Relative Strength Index (RSI) is oversold for the first time since March.
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NEO/USDT daily chart
The last time, NEO price had a massive 550% rally from the overextended RSI with very little opposition on the way up that lasted 4-5 months. If $13.87 is defended, NEO could jump towards $17.45, where the 100-SMA is located.
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NEO/USDT 4-hour chart
Nonetheless, bears are still in control over practically all time-frames. On the 4-hour chart, the price of NEO has slipped below the 50-SMA, 100-SMA and 200-SMA, turning all three into resistance levels.
The RSI is also on the verge of overextension. Nevertheless, it’s important to note that the last time this happened, on October 28, NEO’s price kept dropping further. If the critical support level at $13.87 is lost, NEO could easily fall towards $12 and potentially as low as $11 if the selling pressure is too intense.
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