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NEO Making a base after the mini-Crash. Can this be the right moment to buy?

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Fig 1 - Neo 4H Chart

NEO had a very strong upward move last week, but it has suffered the sharp pullback created by the mini market crash. On the 4H chart, we see that the upward movement was too over-extended, so NEO's price suffered a 20% drop, but currently is recovering quite well, after two bounces from the $9.39 level. The chart shows the linear regression channel that NEO has created in its upward move. We note that the price previously to the drop was extremely overextended, as it was a lot higher than the +2 sigma upper edge. On the chart, we have drawn a similar channel with the edges at +5 standard deviations from the mean, and the price touched it momentarily. That is an extremely rare event, as less than one in a thousand cases, the price goes that far. Thus, it is not surprising te pullback towards the centerline, which is the consensus of the price over the entire collection of prices inside that channel.

We see now that price is bouncing off from this central line, so there is still some bullish bias for this asset.

A break of the $10 level could drive the price up towards the +2 Sigma line again, as the technical indicators still point to a bullish bias: Price above its 50 and 200 simple moving average (SMA), and the RSI curving up from near the 40 level. In favor of this move is also the fact that NEO has been moving bullishly against the Bitcoin, which means it is currently even more bullish than BTC.

The failure to do this movement will happen if the asset moves below $9.39. If that happens, bears have a nice move towards the -2 Sigma line.

Technical Levels

Support Pivot Resistance
8.30 10.00 11.47
6.90 13.21
5.10 14.60

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Source: https://www.cryptorocket.com/news/neo-making-a-base-after-the-mini-crash-can-this-be-the-right-moment-to-buy/
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