NEO (NEO/USD) Analysis October 30, 2017
Neo continues to chop around, building a bit of a base on Friday. The $25 level underneath should continue to be massively supportive, and we have been going back and forth for some time. I think this is a nice market to play with more of a range bound system than anything else, with an expectation of a breakout to the upside. If we get that, then it’s likely that the market will continue to reach towards the $40 level above. Eventually, I think we go much higher, but the US dollar has been strengthening as of late, so keep that in mind, as it of course has an effect in the crypto currency space. I think that you can take your time and slowly build a position, as Neo has been going sideways for several weeks.
Building a basing formation
If we broke down below the $25 level, then things get interesting, because it would show a significant amount of weakness. However, I think currently were trying to build more of a basing pattern, as the market had recently been very bullish, then broke down significantly, and then we found ourselves in this area. Ultimately, I think that the crypto currency area should do well, and of course Neo will be a beneficiary although it is a mid-level currency, and not one of the majors. Because of this, may take a little bit longer to get to higher levels, but I think a “rising tide lifts all boats.” This is an expression that use a lot of Wall Street, meaning that if we are in an uptrend for stocks overall, all companies will eventually go higher. That’s a bit of what we are seeing in the crypto currency space, and I think Neo course will continue to be a follower of Bitcoin.