Prior to the announced NEO Testnet upgrade notice on 15 March 2019, the NEOUSD has maintained a slow but quite stable bullish trend on the higher weekly time frame and lower daily and 4hour time frames. Join us in this crypto technical analysis as we analyze the major technical price patterns and possibilities of further price gains going forward.
Technical Analysis NEO/USD
After attaining an all-time height of 198.20 in January ’18, the NEOUSD pair formed a hanging man price pattern on February ’18. From that point on, the price of NEO entered into a downward spiral which is about 95.5%.
The series of bearish candles that represented a bearish trend was reinforced by bearish accumulation patterns on July and September ’18. The double bearish accumulation pattern triggered on December ’18 and January ’19 shows an increase in selling pressure. This could imply further price decline or a price reversal to the upside, in a case where the accumulation resistance is breached.
NEOUSD: Weekly Chart
The above weekly chart shows a bearish accumulation pattern on 16 July ’18 with critical resistance at 40.81. The price of NEO first crashed by 58%, retraced a bit before finally ending at 82.6%.
Similar to Cardano’s ADA coin and some other Altcoins, the weekly chart of NEOUSD also triggers a bullish regular divergence, which was confirmed by a breakout of bearish accumulation on 17 December 2018.
Following the breakout pattern on 17 December, a strong support level was established at 6.92 by a double bullish accumulation pattern on 31 December ‘18, emphasizing the presence of bulls in the market. The price moved higher and again triggered a bullish accumulation pattern on 11 March ’19.
NEOUSD: Daily Chart
Coming a little lower on the time scale, the daily chart also triggers a breakout of bearish accumulation, confirming the bottom of a bearish trend on 08 February ’19. The price of Neo from this time scale triggered a triple bullish accumulation pattern and confirming a 43.5% price surge.
A more recent pattern on the daily chart is the bullish hidden divergence pattern triggered on 27 March ’19, threatening to push the price to the 11.06 resistance level.
NEOUSD: 4-HOUR Chart
If you’ve been following the technical our series of technical analysis, you’ll agree that breakout or breakdown of accumulation patterns have been found to be significant in confirming a change in trend or end of a price retracement. Such is the breakout of double bearish accumulation on 05 March ’19 08:00 which led to about 11.0% price surge.
An opposite breakdown of bullish accumulation switched the course of the trend to bearish for a 6.0% price decline. From this point forward, it has been a rollercoaster with bullish and bearish swings on 11 March ’19 16:00, 21 March ’19 00:00, and finally a bullish hidden divergence on 26 March ’19 for a 13.3% price increase.
Conclusion and Projection
As analyzed above, the NEOUSD price charts show evidence of possible bullish trend recovery. However, the volatility of the current weeks compared to the previous weeks of 2017 and 2018 appear to be low. Therefore, while we take short term breakout trades in the bullish direction, we should be mindful of surprises in the opposite direction as the monthly chart has not shown a definite change in trend.
Visit Cryptocointrade for more crypto technical analysis.
Subscribe to our Newsletter to be a part of our future $1,000 per month contests.