Neo has fallen slightly during the trading session on Thursday as we continue to see crypto get hammered. Neo is pretty far out on the risk spectrum, so it is difficult to imagine a scenario where it would suddenly take off without some type of help from the outside. The most commonplace of help would be Bitcoin and Ethereum, both of which are at least trying to stabilize, but it is more likely than not going to be a situation where we will ultimately have plenty of sellers.
There is a lot of fear in the world right now, and that does not bode well for crypto, and therefore it is difficult to imagine a minor coin like this suddenly attracting a lot of inflow. If we do rally from here, the market will more likely than not see quite a bit of resistance at the $16.50 level, which is where we had previously seen so much support. “Market memory” could continue to come into the picture, so ultimately this is a simple “fade the rally” type of scenario.
The alternate scenario is that we simply break through the bottom of the candlestick for the trading session on Thursday, but if it did it is likely that the market could go all the way down to the $9.00 level. The 50-Day EMA is sitting at the $20 level, and we would need to break above there before I could even consider buying Neo. Crypto in general looks horrible right now and Neo is going to get crushed every time it tries to rally.
On the downside, it is likely that we would see this market go all the way down to the $5.00 level on a breakdown, with the $7.50 level possibly offering a little bit of support. That would be psychological at best, so it is hard to imagine that it would hold for anything more than a short-term bounce. Once we break through there, I anticipate that even more money would go flowing to the downside. Bitcoin has broken through the $30,000 level, although it is trying to stabilize. If we were to break down below the $25,00 level, then Neo will get the brunt of selling as well due to the fact that it is such a small market.
