Neo initially tried to rally on Friday but pulled back from the 50-day EMA again. This is an indicator that has been a bit difficult to get above as of late, while crypto in general has struggled. Neo has tested the 50 day EMA a couple of days in a row, and it looks as if it is going to fail as we have formed two shooting stars in a row.
If we break down below the lows of the last couple of days, it is likely that we could go looking towards the $20 level underneath. Quite frankly, Neo is going to continue to struggle in general as long as crypto does. Neo is a minor alt coin, although it is traded quite a bit in Asia. In other words, you need to see a lot of risk appetite out there in order for Neo to suddenly take off. On the other hand, if we get some type of major “risk on move”, then we could see the market go higher, perhaps reaching towards the 200 day EMA above.
One thing is for sure: the alt coins desperately need Bitcoin to rally in order to find any real strength. The markets continue to see a lot of noisy behavior and a lot of geopolitical risks let alone the concerns of the Federal Reserve tightening monetary policy. That has a major influence on what people do with their money, and a place like Neo is going to be not necessarily the first place they would go. In general, I think that we will continue to see a lot of noisy behavior regardless of what happens, so if you are looking for a longer-term investment, Neo might be the one for you. That being said, the overall attitude of this market is one that is very lackadaisical with a slightly negative bias, and I think that will probably continue going forward. I would not put too much of my money into the market right now, but if we do get a move above the 50 day EMA it would be the first bullish action that we had seen for a while. This would be especially impressive if we also get Bitcoin moving above the $50,000 level. No matter what anybody tells you, Bitcoin moves everything else.
