Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice.
- The market structure and the indicators showed bullish dominance
- A move above $12.5-$13 could see rapid gains
As Ethereum [ETH] breaks past the $1840 resistance level to reach $1900 and Bitcoin [BTC] attempts to climb above $29,200 once again, the broader crypto market sentiment remains bullish. In this context, Neo (NEO/USDT) continued its bullish trend since 22 January 2023, after breaking above the $8 former resistance.
Read Neo’s [NEO] Price Prediction 2023-24
Trading at $12.13 at press time, NEO stood with a market cap of $1.5 billion and could face significant resistance at $12.45 and $14.4, with support at $10 and $8. In this technical analysis, we will examine various indicators for NEO/USDT and determine the short-term outlook for the pair.
The market structure remained bullish in the past two monthsRelative Strength Index (RSI): The RSI for NEO/USDT stood at 51, indicating a neutral market momentum. This value suggested that there was a balance between buying and selling pressure, and the price could move in either direction.
Bollinger Bands: The Bollinger Bands for NEO/USDT were seen in a slowly converging position, signaling a decrease in volatility. This development could point to a period of consolidation or a potential breakout in either direction in the near future.
On-balance Volume (OBV): The OBV for NEO/USDT was seen on a steady uptrend since the start of 2023. This pattern indicated consistent buying pressure, which contributed to the bullish trend observed in the NEO/USDT pair.
Chaikin Money Flow (CMF): With the CMF value of +0.2, there was a strong influx of money into NEO/USDT. This positive signal suggested that there was significant buying interest in the market, reinforcing the bullish sentiment for NEO.
Moving Averages: The 21-period Simple Moving Average (SMA) for NEO/USDT was at 12.31, while the 55-period SMA stood at 11.5. The price, at press time, was trading just below the 21-period SMA and above the 55-period SMA, suggesting a generally bullish trend. A break above the 21-period SMA could further confirm the bullish momentum.
How much are 1, 10 or 100 NEO worth today?
Moving Average Convergence Divergence (MACD): The MACD for NEO/USDT was at 0.21, with both the MACD and signal line just above the zero line. This slightly bullish signal indicated that the market momentum was positive, and the price may continue to rise in the short term.
Parabolic SAR: The Parabolic SAR for NEO/USDT showed the SAR dots above the price, indicating a bearish trend. Traders should monitor the SAR for any potential shift to below the price, which could signal a bullish trend reversal.
Analysis showed a buy signal on the higher timeframes but a BTC pullback could throw a wrench in the works for NEO traders
The bullish sentiment in the broader crypto market was reflected in the NEO/USDT pair, which has been on an upward trajectory since 22 January 2023. The indicators paint a largely positive picture, with important resistance levels at $12.45 and $14.4 and support at $10 and $8.
Given the current market scenario, traders should closely watch the NEO/USDT pair for a breakout above the 21-period moving average or a break below the crucial support levels. A break above the 21-period SMA could present a ‘buy’ signal, while a breach of the support levels may indicate a ‘sell’ opportunity.
In the meantime, traders should remain cautious and stay updated on any fundamental news or developments surrounding NEO and the broader crypto market, as these factors can significantly impact market sentiment and price action.