Just like most coins in the top 10, NEO is sliding with Bitcoin. So far, it is down 19 percent on a weekly basis and as the dump continues, bears are likely to break below $25, our main support line and the lower limit of the $20 trading range. Remember, this erosion is happening at the back drop of solid fundamentals that are technically supportive of price.
From the News
- Perhaps the announcement by the San Francisco based DCEX that it has plans of adding NEO and Cardano on top of their 15 cryptocurrencies on offer is a stand out. The exchange itself has XRP as its base currency and is just one of the many exchanges that see value and efficiency of adding XRP. Alphapoint will power the exchange.
- In a medium post, NEO said they will be partnering with an internet security audit firm, CertiK. As they collaborate, CertiK will look into NEO blockchain and implement what they call “formal verification framework” in their smart contracts. Besides, the security firm shall audit NEO’s smart contracts and verify all digital identities within the platform. NEO said this security audit was necessary as most of their development came from individual coders and as such to have protective mechanism in place against potential attacks is but paramount.
— NEO Smart Economy (@NEO_Blockchain) August 1, 2018
- SmartT is the latest dApp built on the NEO blockchain and runs on the nOS client. The later allows transactions to be sent directly to the NEO blockchain through simple Java Scripts, simplifying coding as a result. The brains behind it is Asif Raza and SmartT is an event ticketing dApp and the first to make use of Master Contract Token (MCT). MCT is a utility token.
— NEO News (@NEOnewstoday) July 30, 2018
NEO Technical Analysis
On a weekly basis, NEO is down 20 percent and the reflection of that capitulation is clear in the weekly chart. Note that after breaking below April lows on week ending June 10, NEO has been on a slump in literal sense.
Yes, there were attempts of higher highs in the first two weeks of July but afterwards, bears took over. At current prices and bear velocity, we might see NEO prices printing below $25 for the first time this year.
As highlighted in our previous technical analysis, NEO prices are technically bearish. Before this recent depreciation, we needed strong conclusive close above $40. That’s previous support now resistance and a bear break out level of June 10. It’s an important price level in my opinion.
Now, for buyers to be in charge, we must see moves above this $20 consolidation and trends above $40. However, that is steep for buyers. Instead odds are sellers might sync in with the main trend, close below $25 or July 2018 lows.
Notice that sellers are also past the one month support trend line of July 2018. This means there is a multi-level support break if we consider June 10 break below.
Once prices breach $25,we suggest taking shorts on every retracement testing $25 with first targets at $15.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.