Guys, I have to bring this to your attention. The first concerns the very good thing that adoption brings: That of increased crypto kitties in Ethereum’s EVM platform. While it is a good thing, there arise a number of challenges just like it has been the case for BTC over the past few months. That of wait time.
It is counterproductive and many users are really concerned about this subtle encroachment and development of a fee based structure in a utility which is at its infancy.
Mind you, it was for the same reason why ETH grew in the first place. This fee-base time and gas limitation is something that will inevitably have a long lasting effect on the platform. While it negative for ETH, it will be a free pass to NEO.
NEO offer similar services as Ethereum’s EVM platform but NEO has a potential to alter the structure and increase the number of transactions per block. This of course is welcomed and sooner or later you will see movements and major ICOs launching on NEO. Remember, tomorrow Korea-based Coinrail will add NEO to its exchange and that is another reason for a potential rally.
Technically, we are in a 50-50 bull trend which is highly dependent on NEO price action. We can go on and talk about last week’s pin bar which confirmed week ending November 26 bear candlestick. Before this candlestick, stochastics were bullish but are now turning lower in sync with general price action. The thing is, with increasing adoption, fundamentals will tend to take over and technical indicators will be used to fine tune entries depending on the prevailing sentiment.
At the moment though, the weekly 20 Period MA is our main support line and the fact that this rebound was from the 50%-61.8% Fibonacci retracement line mean there is an open door for some upswings.
Some pretty nice things in the daily chart. The middle BB is shoring NEO prices and preventing any depreciation below November 30 lows where price action made a higher high with a stochastics buy signal.
Already-and mainly because of sustained up pressure and close above $34- there is a clear buy confirming those higher highs after December 1 bull candlestick.
In our entry chart we note key developments that endorse our bullish skew. The first got to be that break above $34 happening after a strong bullish divergence between November 24 and 30 lows. This consequent bull rally lead to that break above resistance trend line on November 3 and earlier today, price action retested that same trend line.
We remain bullish because of fundamental reasons and that stochastic buy signal in the daily chart. As a result, traders are urged to set a buy stop above December 3 highs at $41.