Given Chinas recent bans on ICOs and cryptocurrency exchanges, I think it's worth looking at Chinas first attempt at creating a public blockchain, NEO.
Dubbed the 'Ethereum of China' because of its iteration on Ethereums smart contracts, NEO has recently been added to Bittrex's exchange.
Given the lack of data, we will struggle to properly analyse the long term view. However, if we base it on other cryptocurrencies we can assume that the longer term trend is up and that we can retracing at the moment.
- Fake break of a down trend line from last Thursday.
- Currently a sideways market (trading between 19 and 26).
- The current trend has been down from the all time highs of 49.87.
- Assuming that the major trend is up then we should look for areas to buy this market.
- Currently below both monthly and weekly pivot points, suggesting sentiment is still to the downside.
- MACD not showing signs of direction.
Resistance - 24.71, 26.00 & 33.00.
Support - 20.00, 18.00 & 15.40.
Given the false break and the fact that we are below both monthly and weekly pivot points suggest we still have more downside.
The next level to look to buy would be around the weekly S1 at 15.40, as the market has held there in the past.
The better confirmation would be through the weekly pivot point at 24.70, however this then finds you running into the monthly pivot. So again, the better confirmation would be through the monthly pivot at 33.20.
This might be seen as waiting to long to get in however it will be the market giving you the most confirmation that it is ready to move higher.
With the Chinese throwing a curve ball at the crypto market, I still think the fact that NEO is collaborating with Chinese authorities to map real world assets is a real positive for this cryptocurrency.
Although the Chinese have banned ICOs, they are still interested in the blockchain technology and I think they may look after NEO because of that.
Disclaimer: This is just my view and shouldn't be taken as investment advice.