NEO price struggling at $20 resistance

NEO price struggling at $20 resistance
Written by:
Stanko Iliev
22nd October, 20:46
  • The transaction volumes of this cryptocurrency are expected to increase
  • If the price jumps above $20 the first target could be located around $22
  • As long the price of NEO is above $16 this cryptocurrency is not in the “sell” zone

Neo (NEO) has advanced from $16.8 above $19 in less than several days and the current price stands around $18.9. NEO has found strong support above $16 but the price is still not able to surpass $20 resistance.

Fundamental analysis: NEO’s popularity is growing

For the investors/traders that are not averse to risky speculative investments, putting a reasonable amount of money into NEO could potentially turn out to be a very good investment. Neo (NEO) is a platform in which users can issue and trade assets,  it is often called the Ethereum of China because it has similarity with Ethereum.

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On this platform, tokens are distributed to prove ownership of an asset, instead of the asset itself. This makes it more straightforward to transfer shares, equity and assets. The rise of Decentralized Finance (DeFi) is gaining momentum and investors in this cryptocurrency are able to gain income from their assets through DeFi tools.

The main trend of this cryptocurrency remains neutral-bullish and NEO is eying to $20 as the uptrend continues. The future price performance of NEO depends solely on the success of the NEO network and the adoption of its technology by developers, programmers, and start-ups.

NEO’s popularity is growing and NEO smart contracts support many common programming languages (Microsoft.net, Java, Kotlin, Go and Python). NEO supports the digitalization of assets and the positive thing is that NEO is one of the Chinese government’s favorite cryptocurrencies.

This cryptocurrency is a highly liquid asset and it is important to mention that NEO is in the top 20 at CoinMarketCap. The price of NEO is still far away from the NEO price predictions but if the price jumps again above $20 that could be a very good opportunity for the short-term traders.

The transaction volumes of this cryptocurrency are expected to increase and once this happens, the price of NEO will be at higher price levels.

Technical analysis: Bulls are focused on breaking the resistance level above $20

NEO can be a very good investment option according to estimates and some predictions say that this cryptocurrency could be above $100 in the next several years. When trading NEO, you should have in mind that the price could also weaken in the upcoming weeks.

Data source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are $16 and $14, $20, $22 and $26 represent the resistance levels. If the price jumps above $20 it would be a “buy” signal and we have the open way to $22.

Rising above $26 supports the continuation of the bullish trend for NEO and the next price target could be located around $30. On the other side, if the price falls below $16 it would be a strong “sell” signal and we have the open way to $14.

Summary

According to analysts, this cryptocurrency has a positive long term outlook because NEO supports the digitalization of assets. NEO is one of the Chinese government’s favorite cryptocurrencies and it is often called the Ethereum of China. As long the price of NEO is above $16 this cryptocurrency is not in the “sell” zone and if the price jumps above $20 the first target could be located around $22.

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