Trade Recommendation: NEO

The NEO/US Dollar (NEO/USD) pair just bounced off of $13.68 on August 14, 2018. At that price, the market was down by over 93% from the 2018 high of $198.20. That makes this coin one of the worst cryptocurrency performers this year. The plummet was so deep that the market was back to where it started in September 2017.

The good news is bulls look hungry for NEO. They are buying in bulk at the cheapest possible price.

Technical analysis show that NEO/USD is respecting historic support of $15.00. Looking at the weekly chart, the market printed almost 200% of its weekly volume average when the market touched the support. The only time this cryptocurrency generated this amount of volume was back in January 2018 when it recorded a high of $198.20.

With skyrocketing volume, NEO breached resistance of $17.50 on August 27. The price action broke the large falling wedge on the weekly chart. So far, bulls have managed to stay above the breakout but the rally appears to be fading. This could be a good chance for you to buy the dip.

The strategy is to buy on dips as close to $19 as possible. Ideally, bulls can establish a higher low at this level so they can generate more momentum. If they do, the market has a good chance to climb to our target of $50.00.

The process may take a month.

Weekly Chart of NEO/US Dollar on Bitfinex

As of this writing, the NEO/US Dollar pair is trading at $23.66 on Bitfinex.

Summary of Strategy

Buy: Buy on dips as close to $19.00 as possible.

Target: $50.00

Stop: $17.50

 

Disclaimer: The writer 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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.