Early May Update: Technicals
NEO’s current state is not looking good. It is setting all time lows measured in BTC, since their rebrand from Antshares to NEO.
Daily NEOBTC chart is one huge bloodbath, with red candles hammering each other deeper and deeper. NEO, failed to defend an important support line at 172k sats. It is currently ranging below that zone at 157k satoshis, waiting for bigger volume to take off uphill. It will, still, all hinge on what bitcoin does in the upcoming weeks. If BTC keeps tumultuously moving up, NEO will probably lose even more ground to BTC.
Despite the super low price, buying NEO here would be a textbook example of “catching a knife”. Best position in NEO is to be out of NEO positions. The faltering price leaves its marks on the community as well as it grows impatient and irate, another bad fundamental signal for the project.
One thing to bear in mind is the turbulent and erratic nature of bitcoin – a sudden thrust up or slide down is always on the cards which would invalidate this and all other analysis and predictions. In such cases, market is shaken up with most traders exiting altcoins and entering bitcoin positions, especially in the initial phases of bitcoin pumps. So it is always good idea to keep a close eye on bitcoin’s behaviour before opening a long or a short on any other coin in the market.
Should this happen, stop by again to check out our updated charts and thoughts.
NEO is down 4% in USD on the week and 14% on BTC in the same time-frame.
Trading volumes are not looking good, the reported volume is 40x larger than the “Real 10” volume (trading volume on the exchanges that prevent wash trading). This means that NEO’s liquidity is massively inflated which is worrisome.
On the other…