NEO Technical Analysis: The First Target on the Way to $55 Is Taken
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However, a serious signal of this scenario implementation will be when buyers take control of the range of $37-$38. The critical point of this scenario was the mark of $29. Though, buyers decided not to share such a nice price with other market participants and continued to increase the NEO price without correction.
Taking Control of the Range of $37-$38
The range of $37-$38 was broken at increased volumes. After the breakthrough, we did not notice an increase in the aggression of sellers. This fact tells us that there is no big seller who is ready to keep the price in this range. Therefore, the consolidation that formed on the daily timeframe is likely to be broken up.
Analyzing the situation in the BTC market, which certainly has an impact on NEO and the entire cryptocurrency market. Moreover, we can see that NEO buyers are keeping the price quite firmly. Since the BTC price has been systematically falling since 31 July, the NEO market has simply stopped, waiting for the right moment to shoot up.
Technical Analysis of NEO on a 4-Hour Timeframe
Analyzing the new local growth wave in the NEO market on a 4-hour timeframe, we see a clear movement of prices in the trend channel:
After the high volumes recorded on 31 July, the NEO price began to correct. Although the longer this correction lasts, the lower the trading volumes are. At the same time, the NEO price falls very slowly. These facts indicate the tactical depletion of sellers to clear the way for a new local growth wave.
The NEOBTC chart also hints at the strength of buyers and the desire to stay above the local liquidity range:
Nevertheless, it should also be understood that the BTC price decline is quite smooth. This fact allows BTC investors to invest Bitcoins in other altcoins to insure their risks. But, if there is an alternative scenario in the cryptocurrency market and the BTC price accelerates its fall to the range of $34,500-$35,500, investors will close their positions and enter stablecoins. In this case, NEO buyers will need to keep the range of $37-$38.