Another day in the red for NEO, as Monday's slide carried on into the early hours, though NEO found support early and is looking to make a move through to $63 levels to bring key resistance levels into play this afternoon.
NEO fell by 2.29% on Monday, partially reversing Sunday’s 7.91% gain, to end the day at $62.2.
Momentum from Sunday’s rally carried through the morning, with NEO breaking through the day’s first major resistance level at 65.6 and 23.6% FIB Retracement Level of $65.5 to hit an intraday high $66.62 before a market wide pullback weighed on NEO through the afternoon.
A mid-afternoon intraday low $60.5 came within reach of the day’s first major support level at $60.15, providing NEO with a cushion from more material losses as seen elsewhere in the cryptomarket.
NEO managed to move back through to $62 levels by the day’s end and avoid sub-$60, while the near-term bearish trend formed at the end of April’s swing hi $94.65 remains intact, in spite of Sunday’s rally, NEO having coughed up 5.4% Monday through Sunday and 34% since 30th April’s swing hi.
For the NEO bulls, the positive will be a hold above the day’s key support levels and a test of the day’s key resistance levels, though the sharp sell-off in the afternoon reflects investor sentiment that is expected to continue to pin back any material rebound to year-end highs for now.
At the time of writing, NEO was down 2.31% to $60.82, NEO sliding through to sub-$60 levels to test the day’s first major support level at $60 with an intraday low $59.88 at the start of the day, before partially recovering to current levels.
The morning’s slide came off the back of Monday’s late morning reversal that spilled over to this morning, with NEO’s recovery to $60 levels likely to be key for direction through the middle part of the day.
A move through to $63 levels would support a run at the 23.6% FIB Retracement Level of $65.5 and the day’s first major resistance level at $65.7, while any attempts at the day’s second major resistance level at $69.2 will likely be thwarted, selling pressure at $65.5 likely to be too great to support a run at $70 levels through the day.
While regulatory risk continues to pin back the major cryptos, news of NEO being ranked number 4 in China’s Ministry of Industry and Information Technology’s blockchain project rankings should provide some support, the number 4 ranking well above its 11th place by market cap, though we wouldn’t expect a material move up the market cap rankings just yet.
Major Support Level: $60
Major Resistance Level: $66
Fib 23.6% Retracement Level: $65.5
Fib 38% Retracement Level: $71
Fib 62% Retracement Level: $80
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.