Neo has done nothing for the last several days, and it does not look as if it has any real hope of recovering for a longer-term move. After all, the $16.50 level had been supported previously, and now it should have quite a bit of resistance attached to it. The last couple of days have been a very quiet market, and it is likely that we will continue to see the downward pressure jump into this market. I think a lot of what we are looking at is simple consolidation ahead of a continuation move.
There is nothing fundamentally positive about crypto in general, and certainly not about Neo. Neo is a market that has been collapsing for a long time, and this is just the most recent iteration of the problem. Ultimately, I do believe that this is a market that will continue to attract a lot of attention, but at the end of the day, it has no real reason to take off on its own. We are in a similar situation to when the tech bubble busted, as only the most useful companies survive. The crypto markets are about to see mass destruction, which is exactly what the industry needs to get rid of a lot of the less useful ecosystems.
At the end of the day, Neo could very well go to zero, but that obviously would take quite a bit of time. Whether or not that happens is still open for debate, but there is nothing on the price chart that suggests people care. The volume is absolutely anemic, which is a very negative sign in and of itself. As long as that is going to be the case, there is no reason to think that people are suddenly going to jump into this market. The only real hope for this market is if we get a speculative bubble going again in the entire industry. More likely than not, we are going to see a continuation of destruction when it comes to pricing, and I think Neo will get smoked before it is all said and done. I would fade rallies, looking to collect profits after several days of the green candlesticks. As far as buying is concerned, we would have to take out $20 to be serious about doing so.
