A test of 200-HMA likely on NEO’s road to recovery

Table of Contents

  • NEO/USD remains trapped between 50 and 200-HMA.
  • Hourly RSI has ticked higher above the midline.
  • 200-HMA is likely to be tested in the near-term.

NEO (NEO/USD) witnessed good two-way businesses on Friday, having finally settled in the red after fading a spike above the $23 mark.

 So far this Saturday’s trading, the buyers have regained control, allowing a tepid bounce in the spot. At the time of writing the No. 19 coin rises 2.4% to $21.82.

Looking at it technically on the hourly chart, the price is trending upwards after bottoming out last Tuesday at $18.60, carving out a potential rising channel formation. Meanwhile, the sellers continue to lurk above $23, leaving the rates in a familiar range.

The NEO bulls have managed to defend the 50-hourly Simple Moving Average (HMA) at $21.60 on Saturday, despite the overnight drop to near the $21 region.

Over the last hour, the spot caught a fresh bid-wave and recaptured the 21-HMA, now at $21.61, opening doors towards the horizontal 200-HMA resistance at $22.30.

A sustained break above the latter is needed to take on the $23 barrier once again.

Alternatively, a rejection at the 200-HMA hurdle could reinforce the bearish bias, as the critical support at $21.60 could be put at risk. That level is the confluence of the 21 and 50-HMAs.

Further down, the rising trendline support at $21.41 will be challenged. Acceptance below which would validate a rising channel formation, with the next downside target seen at the horizontal 100-HMA at $20.83.

To conclude, the spot is set to extend the bounce to 200-HMA, with the uptick in the hourly Relative Strength Index (RSI), currently at 53.90, also backing the upside potential in the near-term.

NEO/USD: Hourly chart

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NEO/USD: Additional levels to consider

 

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