(MENAFN- Daily Forex) The NEO/USD market fell significantly on Monday as it looks like we are going to fall and reach towards the $20 level. The $20 level is a psychologically important figure, and as a result it suggests that we could try to break down below there and reach the lows again near the $16.75 level. Because of this, if we break down through there, the market is likely to continue to see a massive selloff reaching towards the $15 level. Neo is going to struggle to gain any type of strength at this point, because the risk appetite around the world is shrinking. Keep in mind that Neo is an extraordinarily out of bounds type of risk asset.

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The 50 day EMA above is sitting just above the $25 level, and that could cause a little bit of resistance. That being said, after the move on Monday it is very unlikely that we will see me a breakout above there without some type of change in the geopolitical sphere or for that matter a change in monetary policy coming out of the Federal Reserve. The Federal Reserve tightening monetary policy will work against the value of risk assets anyway, but as long as geopolitical nonsense continues, that makes things even worse.

Beyond that, adoption of Neo has not been as strong as once hoped, and that has not helped at all. That being said, if we were to turn around and break above the highs of the last two candlesticks, then it is possible that we could go looking towards the 200 day EMA which is sitting near the $35 level. The $35 level being broken would be a bigger“buy-and-hold” type of situation but the odds of that are at about 5% right now, and that is probably being generous.

To the downside, we could see a massive selloff if we continue to see bearish pressure and other coins such as Bitcoin , which broke significantly below the $40,000 level. Because of this, it is very likely that we will continue to see the influence of Bitcoin going forward, so it needs to recover before you can even think about buying Neo as it is so much further out on the risk spectrum.

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