Bitcoin
BTC$29 797.50

1.78%

Ethereum
ETH$1 976.21

0.56%

Tether
USDT$0.998942

-0.01%

Binance Coin
BNB$332.54

3.65%

USD Coin
USDC$1.000323

0.04%

XRP
XRP$0.402609

-1.06%

NEO: Cup & Handle Turned Bearish Spike Pattern


March 2020

In our previous price prediction article dedicated to NEO, we entertained the possibility of finalization of the cup and handle bullish formation that must result in a substantial price spike. As a result, the price action had played out this scenario to the letter by performing a massive move to the upside right after the handle had been formed - a 70% gain in a couple of weeks, to be precise.  

1-day NEO/USDT chart

Right now, however, we are having a diametrically different situation as the market is tanking insanely due to various reasons, among which many indicate the increasing correlation with traditional markets - S&P 500, for instance, - which are also going through a downfall, the biggest one since the financial crisis of 2008. The global scare of the coronavirus outbreak has also contributed to the situation that we are witnessing on the charts, with this factor being especially relevant to the Chinese blockchain projects like NEO.

How the price of NEO reacted to the market fever


It’s understandable that NEO couldn’t have been left unaffected by the global occurrences on the markets, and the price of the 20th cryptocurrency reacted accordingly. In the period of the last seven days, the value of NEO had decreased by 19.28%, which is considered the biggest pullback since last August, when the minor uptrend had collapsed. Nevertheless, NEO still retains the positive yearly return on investment (24%) and a more than respectable all-time ROI of 6000%. Therefore, the ongoing correction, which many have already labeled as a downtrend, shouldn’t cause too much concern among long-term holders since the coin remains profitable and is likely to rebound once the market shows signs of recovery. But traders who have only recently added this coin to their portfolio, and don’t intend to hold it for a prolonged period of time, should be preoccupied with elaborating the exit strategies because there is a probability of NEO returning to the price levels recorded in early January, thus going back to square one in terms of gains.

The sinking NEO


On the daily chart, we can see that after the initial drop to the interim support at $14, where the price had dwelled for a while, had been followed by a textbook bearish pattern called three black crows, which took the price down to $11 at the close. And even though NEO has been consolidating for the past three days, everything points to the continuation of the downward slide.

1-day NEO/USDT chart

To be more precise, MACD is currently considerably below the zero-level, with both lines going further away from each other, which hints that the pressure from the bears will persist. Most likely, the sellers are aiming to push the price to the 200-period moving average, which currently runs parallel to the $10 level. That MA should act as strong support, from which the move to the upside - the previous support at $14 that would now act as resistance - appears to be feasible. However, if the price falls below the 200 MA, then it is most likely to find the bottom at the pre-2020 levels at $7.7 or even $6.6 - traders who had obtained NEO in early January should be prepared for this scenario.

Author: Alex Paulson for Crypto-Rating.com

Related

Neo: The Bullish Flag Awaits Resolution
Neo: The Bullish Flag Awaits Resolution
Neo Explodes to the Upside After Successful Break
Neo Explodes to the Upside After Successful Break
Neo Bullish On All Fronts This Summer
Neo Bullish On All Fronts This Summer
NEO Is a Step Away From the Explosive Zone
NEO Is a Step Away From the Explosive Zone
NEO Has Its Target Set on 50 EMA
NEO Has Its Target Set on 50 EMA
NEO: The misleading rally in January
NEO: The misleading rally in January
NEO Price Forecast for November 2019
NEO Price Forecast for November 2019
NEO moves to new blockchain - NEO 3.0
NEO moves to new blockchain - NEO 3.0

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 58.4% 89 $29 797.50 1.78% -0.41% $567 609 015 596 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 56.4% 88 $1 976.21 0.56% -2.84% $238 954 464 492 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94% 1 $0.998942 -0.01% 0% $73 197 575 085 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 59.2% 85 $332.54 3.65% 10.37% $54 295 589 528 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 94% 1 $1.000323 0.04% 0.02% $53 422 966 109 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 58.4% 91 $0.402609 -1.06% -6.04% $19 463 373 242 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 96% 1 $1.000280 0.05% 0.01% $18 311 484 205 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 59.6% 92 $0.518492 1.08% -7.75% $17 493 413 044 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 59.2% 92 $49.18 0.18% -9.36% $16 686 805 636 SOL 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 56.8% 88 $0.083335 0.30% -6.22% $11 056 071 504 DOGE 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 57.2% 92 $10.05 2.61% -3.60% $9 928 054 647 DOT 7 days price change
12 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 60.4% 89 $29 763.34 1.86% -0.45% $8 214 769 231 WBTC 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 59.6% 91 $28.63 -0.23% -13.98% $7 753 109 952 AVAX 7 days price change
14 TRON (TRX) TRX TRON predictions 72.8% 57 $0.080951 0.80% 12.50% $7 660 741 401 TRX 7 days price change
15 Dai (DAI) DAI Dai predictions 96% 1 $1.000068 0.05% -0.04% $6 575 909 240 DAI 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.