Neo Price Analysis: Pullback or Continuation for NEO/USD?
Neo is trending lower inside a descending channel and has just broken below the mid-channel area of interest. Price is hovering around the latest lows at $60 and could still be due for a bounce back to nearby resistance levels.
The 100 SMA is below the longer-term 200 SMA, though, so the path of least resistance is to the downside. In other words, the downtrend is more likely to continue than to reverse. A pullback could find resistance at the $70 level or all the way at the top of the channel around $100, which is close to the dynamic inflection point at the moving averages.
Stochastic is on the move up to show that buying pressure is present. However, a downward crossover appears to be taking place, which means that sellers are putting up a fight. RSI has more room to climb, though, so a large correction is still a possibility.
Regulatory fears continue to haunt cryptocurrencies, particularly in the US and Japan. In China, Neo has gained popularity as it was designed to be regulator-friendly with a centralized approach. This could cross over to other Asian markets as Malcolm Lerider, the senior research and development manager of NEO, will give a presentation in the Innovation Convention Asia will be held at Akasaka Intercity in Tokyo, Japan.
This means that Neo has the potential to be patronized by other large cryptocurrency markets like Japan and South Korea that are currently showing stricter oversight with other altcoins. Under the Neo platform, entities are expected to have a unique digital identity that will be verifiable.
NEO is a non-profit community-based blockchain project that utilizes Onchain technology and digital identity to digitize assets, to automate the management of digital assets using smart contracts, and to realize a “smart economy” through a distributed network.