(MENAFN- Daily Forex) Neo initially tried to rally on Wednesday but gave back gains rather quickly as we have fallen back towards the $20 level. While it is difficult to see, we did end up forming a bit of a shooting star, but in a very tight range. Bitcoin and Ethereum both fell during the day, so it certainly makes a bit of sense that Neo would struggle. However, it is obvious that Neo has bigger problems as it has dropped from a high near the $140 level in May of last year to reach all the way down to the $20 handle. At this point, it has a lot of work to do in order to prove itself.

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At the very least, it needs help from its larger counterparts such as Bitcoin and Ethereum if it has any hope whatsoever to make a bigger move. After all, this is a market that tends to be more of a follower than a leader, as its days of prominence have slipped away. That being said, it does make a reasonable alt coin to trade if crypto starts to turn things around. After all, traders will branch out into other assets in order to pick up bigger returns, and Neo is most certainly a candidate for“hot money” to flow into. Whether or not it is sustainable will completely depend on the rest of crypto in general. Quite frankly, I do not know that it has enough momentum to stand on its own in the short term.

It is worth noting that the 50 day EMA currently sits at the $26.76 level, so if we were to break above the highs during the trading session on Wednesday, and if we have some type of confirmation from other crypto markets of bullish action, then you might be able to have a short-term trade to reach towards the 50 day EMA. That being said, I suspect that you would probably have a pretty quick pullback though, because I do not know how many people would trust Neo at this point. When you start to change the overall trend, you typically need to see a lot of back and forth and choppy action in order to fill out an accumulation phase, when people are starting to pick up an asset at lower prices. We do not have that quite yet, and volume is very poor.

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