Neo did very little during the trading session, and you can even draw a nice comparison between Neo and Bitcoin because they have moved in the same type of momentum over the last week or two. Because of this, I think it is obvious that Neo would need to see Bitcoin take off to the upside, which could show money flowing back into the crypto market. Keep in mind that Neo is much smaller than Bitcoin, so if we get a sudden “risk-on move” in the crypto market, it should be somewhat outsized in this market.
The $20 level offers a significant amount of support that extends down to the $19 level, so if we were to break down below that level, is very likely that we could see this market reach the $15 level over the longer term, which would show even more weakness in the neo-market. At this point, Neo is starting to lose its influence, so you need to look at influence from other markets to determine where it will go. This is not Ethereum, this is not Solana. It does not have a “feel-good story” behind it, but it does make a nice trading instrument to take advantage of and leverage the overall attitude of crypto traders.
Looking at this market, the 50-day EMA sits at the $23.66 level and is dropping. I think that the 50-day EMA will cause a certain amount of technical reaction, but if we can break above there then it is likely that we go looking to reach the $25 level. The $25 level would be a large, round, psychologically significant figure that will also attract a lot of headlines. That is essentially 20% from here, but we need to see some reason for crypto to take off. On the other hand, if we were to take out the support level underneath and drop to the $15 level, then it is possible that we will lose 25%. Neo does tend to be very volatile, but if you line up at the chart on top of the Bitcoin chart, it does follow quite nicely so keep an eye on both charts in order to navigate what happens here. US dollar strength or weakness can also come into play, so pay attention to the US Dollar Index.
