NEO / USD Price Analysis: Taking In Water
The technical outlook for the pair is starting to look hopeless, while fundamental news hasn't had the desired effect.
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- NEO has a bearish short-term outlook, with the cryptocurrency now trading below its 200-period moving average on the four-hour time frame
- A large bearish pattern is starting to take shape across the four-hour time frame
- NEO has turned bearish over the medium-term, with the NEO / USD pair now trading below its 200-day moving average
NEO / USD Short-term price analysis
NEO has a bearish short-term outlook, with the NEO / USD pair now trading below its 200-period moving average on the four-hour time frame.
The four-hour time frame shows that the smaller head and shoulders pattern has now reached its downside target, while a much larger head and shoulders pattern is starting to emerge.
Technical indicators on the four-hour time frame are attempting to correct higher, following the recent sharp decline in the NEO / USD pair.NEO / USD H4 Chart by TradingView
Traders should note the downside target of the larger head and shoulders pattern would take the NEO / USD pair to a fresh all-time trading low.
Relative Strength Index
The RSI indicator on the four-hour time frame is also correcting higher, although it has yet to turn bullish.
The MACD indicator is neutral on the four-hour time frame and is currently failing to generate a clear trading signal.
NEO has also released several important announcements that have the potential to change its bearish short-term outlook. The company has announced plans to migrate to a new blockchain implementation, which will introduce additional improvements in performance of the network. In addition, NEO has partnered with Zeux, a London based Fintech company which will enable holders to spend NEO in all stores accepting Apple Pay and Samsung Pay with Zeux app. This news could generate new interest in the project, at least in the short term.
NEO / USD Medium-term price analysis
NEO has turned bearish over the medium-term, with the cryptocurrency now trading below its trend defining 200-day moving average.
The daily time frame is showing that the NEO / USD pair has now eroded all its earlier monthly gains, with cryptocurrency creating bearish lower lows.
Technical indicators on the daily time frame have turned bearish and continue to generate sell signals.NEO / USD Daily Chart by TradingView
Traders should note that a large head and shoulders pattern is now starting to take shape across the daily time frame.
Relative Strength Index
The RSI indicator is bearish on the daily time frame and shows scope for further downside.
The MACD indicator on the daily time frame has turned bearish, with the MACD signal line continuing to generate a sell signal.
The medium-term prospects for the project do not look particularly promising. Although the project is taking steps to improve its technology, it is clearly losing the competition to bigger networks, such as Ethereum, EOS and TRON. The new blockchain (NEO 3.0) that the team is planning to launch in Q2 2019 will introduce an improved technology, but it is questionable how much and how quickly it will help NEO to solve its adoption problems.
The technical dynamics for the NEO / USD pair have now shifted, with the cryptocurrency turning bearish across both time frames as the recent reversal gathers pace.
Bearish patterns are starting to take shape across the four-hour and daily time frames, which suggests that the NEO / USD pair could still trade much lower.
For a quick look into NEO, check out our coin guide here.