NEO Analysis – That Looks Quite Promising

Today, NEO is one of the best cryptocurrencies on the market. Previously, this coin was analyzed on the 5th of November, when the price was around the 16.5 USD. Despite maybe one maybe positive factor, our outlook on this instrument was negative. This is what we wrote in the previous piece:

„After this, we should see a further upswing. I would be very careful with that though. In my opinion, whole crypto market is rather weak and the breakout to the downside is still probable. Keep in mind that the price closing a day below the 15 USD (orange), will give us a strong sell signal. „

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That was a great call, I hope that our readers did not buy NEO at that time after that false upswing. The price went down almost straight away and was declining till 15th of December when we made new long-term lows around 5.5 USD. From this price, you can see that recent decline was enormous. Now, the situation looks a bit better and actually we can see some chances for a reversal. First of all, we came back above the orange horizontal resistance, which makes the previous breakout a false one. What is more, the price came back above the red down trendline, which is a direct signal to go long. Buying cryptos now is still risky but NEO is giving some hopes here. Additionally, in this case, the risk to reward ratio may be tempting, if you will consider your stop loss order below the orange line.

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