NEO Technical Analysis: February 05, 2020
February 6, 2020
The last several weeks have been quite positive for the cryptocurrency market – Ethereum, Bitcoin, Bitcoin Cash and Litecoin are leading this trend, making the biggest jumps. The price of NEO is also supported by this situation and in only several days the price of NEO has advanced more than 20%. Formerly known as Antshares, NEO is a platform in which users can issue and trade assets. It is very much like Ethereum and because of that, it is often called the Ethereum of China. NEO supports decentralized commerce, identification and digitalization of assets. It is important to mention that NEO also supports the protection of assets and all assets that are registered on this platform have a validated digital identity and are protected by law. The future price performance of NEO depends solely on the success of the NEO network and the adoption of its technology by developers, programmers and start-ups. The positive thing is that NEO is one of the Chinese government’s favorite cryptocurrencies and this factor could provide a major boost for NEO. Some analysts say that NEO is an attractive option not just for Chinese authorities, but for other governments that are wary of the anonymous virtual currency market. In the chart below (a period from February 2019), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $13 and $15, $10 and $9 represent the current support levels.
The crypto market goes through bullish and bearish phases that hugely influence the price of NEO. NEO has a short-term resistance area at $13 and it would take a break above this level to confirm a new leg higher towards the $15 level. If the price drops below $10 strong support that would be a strong “SELL” signal and the open way to $9. If you decide to invest in this cryptocurrency I would recommend you to be careful and to invest a small sum of money in NEO, the best time period to keep NEO in your portfolio is between 3-5 years. In the chart below we can see how did the price of NEO perform in the last 30 days. On this chart, I have marked a “trendline” and if the price drops below this trendline that will be a “SELL” signal.
Recommendation: After researching some of the leading NEO price predictions, I found that most professionals predict the bright future for this cryptocurrency but in my opinion, this cryptocurrency still faces lots of problems. There is still a level of uncertainty surrounding this project but the positive thing is that lots of partners are already supporting this cryptocurrency and NEO is already connected with the Chinese government. NEO has the first resistance area at $13 and it would take a break above this level to confirm a new leg higher towards the $15 resistance level. If the price drops below $10 strong support that would be a strong “SELL” signal and the open way to $9 or even $8.