NEO/USD Forecast: Neo Losing Momentum?
Date
3/30/2022 2:22:10 PM
(MENAFN- Daily Forex) Neo went back and forth on Wednesday to break above the $27.50 level, but it has not shown any real strength one way or the other. That being the case, the market is essentially stuck between the 50-day EMA underneath, and the 200-day EMA above. The 200-day EMA sits just above the $32 level, drifting a bit lower.
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When I look at this chart, I can see that we have been trying to break higher and even form a bit of a double bottom as of late. With that in mind, it looks as if the $20 level is going to continue to be supportive for Neo. As long as we can stay above there, there is going to be a certain amount of hope. After all, when you look at Bitcoin, it broke out during the trading session on Tuesday, and then simply went sideways on Wednesday, suggesting that perhaps money is starting to become a bit more comfortable with the idea of heading back into crypto in general.
The 50-day EMA underneath is starting to curl a little bit higher, sitting at the $23.39 level. That is an area that should offer a certain amount of support, but if we were to break down below there, then it is very likely that we would go looking towards $20. Breaking down below the $20 level then opens up the floodgates to much lower levels as the double bottom will have been breached.
The shape of the candlestick does suggest that we are due for a little bit of a pullback though, as the market has been ripping higher as of late. Keep in mind that Neo will underperform other currencies such as Bitcoin and Ethereum, but certainly will be influenced by them. Now that we are between the 50-day EMA and the 200-day EMA, there is the possibility that we will get a bit of a“squeeze”, which is what happens right before we get a bigger move. Pay attention to Bitcoin and Ethereum, because if they both continue to go higher, then it gives the“green light” for some of these smaller markets to rally and start to climb in value as well. Alternately, if the bigger markets start to fall apart, that is a very negative sign for this one.
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