Pairing Bitcoin, Neo is trending higher on the Medium-term outlook; remaining in an ascending channel. But its Dollar Market is witnessing a slow fall in a descending triangle style. They move in opposite direction.
Resistance levels: $8.3, $9.4, $9.9
Support levels: $7, $6.2, $5.5
Since Bitcoin has been bear trapped for over a week, many altcoins have remained in a dip while others trend high. But for this market, its movement keeps following BTC direction. However, the pattern is currently in a descending triangle as it slowly approaches $7 support.
For about two weeks, trading ranges between $8.3 and $7. The tie in price shows that the trading volume is not increasing. On the Stochastic RSI, the price is about to drop as selling pressure compounds. The red candles are expected to hit the next support.
At $7, a retracement is likely to retest $8.3. If not, a low break would send NEO to subsequent supports at $6.2 and $5.5. By then, the MACD would oscillate lower. For now, its direction is deciding.
From 2400 SAT high in early this month, the correction went to 2000 SAT low. Though, slowly constructing an ascending channel pattern; but it is yet to be considered finish as the direction is still unclear. Until 2200 SAT resistance is broken before a clear sign for bullish is given.
As it is now, the current move is still a fake signal. See the 4 hours MACD waving horizontally on the zero line. It suggests price waiting for the next move.
Currently, the bearish pressure is on the Stochastic RSI as it just crossed down the 80 line. The sellers are taking trade down to the oversold, where the lower trend line lies. A low break on the channel would send price straight to 2000 SAT support. At this support, a continuous break might drive NEO to 1880 SAT and 1700 SAT concurrently.
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