Technical Analysis and Market Entry: NEO Bulls Have Strong Support to Catapult Higher
- NEO free-falling has stabilized thanks to the big $10 buying area coming into play.
- NEO/USD was forced to retest a critical ascending trend line of support after an aggressive price drop.
NEO/USD: Recent Price Behavior
NEO price pressures were well within the control of market bears following a significant loss of momentum late in June. The price dropped from $20 on 26 June, which was the highest NEO/USD had been since October 2018. A decent recovery has been observed for 2019 after starting the year at a low of $7. The strong push north has been very much supported by an ascending trend line, which has been in play since mid-December 2018.
Sellers piled into NEO at the back-end of June, forcing the price to retreat down to the above-detailed trend line. This is in the proximity to a known area of demand, which is in and around the psychological $10 mark. NEO/USD has not traded below this since 13 May, when the most recent bull run commenced. The price rallied some 135%, up to the noted high in June, before paring back this gains between 26 June and 16 July.
NEO and Ontology Partnership
Earlier in the week, it was announced that NEO would be partnering up with its Chinese counterpart Ontology. The two Chinese blockchain platforms are set for the creation of an interoperable protocol. Their joint effort is to encourage the development of the next-generation internet.
NEO will be developing protocols and components that will be supporting a wide range of digital assets. Ontology will resume the construction of its decentralized identity framework.
Both organizations have emphasized within their statements that the collaborative approach is going to be the first step. They are set to build the foundation for a world-wide cross-chain platform with the goal of on-boarding diverse projects and companies in the sector and real-life tackle applications.
Should the bulls break down a near-term area of supply, the $13.50-14.50 price range, then a buy would become attractive. NEO/USD would be needed to break and close above the noted zone to then see confirmation as new acting support. Targets to the upside would be $18 and then $20. Stops would be placed below the previously mentioned zone at $12, only upon the breakout and retest.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.