NEO/USD Forecast: Neo Continues To Test Support

2022-05-09 04:07:41

(MENAFN- Daily Forex) Neo fell ever so slightly on Friday in relatively quiet trading. Looking at the chart, the $16 level continues to be supported, and the action on Friday will have only reiterated that. The market continues to see this area as important, so you have to pay close attention to it. The market bouncing from here does make quite a bit of sense, but I do not necessarily think that it is going to change anything.

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When you look at this chart, the $16 level being broken below could open up the possibility for a move down to the $15 level. The $15 level offers a bit of psychological support as well, so if we were to break down below that level, Neo will almost certainly break apart. The market will be highly influenced by the larger coins in the crypto markets such as Bitcoin and Ethereum as per usual, so you will have to pay attention to those markets as well.

In fact, you could say that Neo looks a lot like Bitcoin at the moment, as we have seen Bitcoin turn around to show signs of support. The $19.50 level above is significant resistance, right along with the 50-day EMA in the Neo market, so I do think that it is probably only a matter of time before we see sellers jumping into the market. I would be more than willing to short the first signs of exhaustion on a daily candlestick, but until then I think it is simply going to be a very noisy market. Nonetheless, I think it is only a matter of time before Neo falls, as it seems to be out of favor. It is probably worth noting that the market has tested this area multiple times, so I think we will see a little bit of a breakdown. It is also worth noting that we have been in a downtrend for some time, so I think we are looking at a situation where you cannot buy Neo until we break above the 50-day EMA on a daily close. If that were to happen, then it is likely that we go looking toward the $25 level, perhaps even the 200-day EMA after that.

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