NEO price analysis: A correction or end of the rally?

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NEO has weakened from $133 below $100 in less than 24 hours, and the current price stands around $110. The current trend of this cryptocurrency remains bullish, but when trading NEO, you should have in mind that the price could also weaken even more in the upcoming days.

Fundamental analysis: Numerous improvements have been applied in Neo N3

NEO price extended its correction from the recent highs above $130, registered on 19th April, but there is no risk of the trend reversal for now. NEO continues to trade in a buy zone, but if the price falls again below $100, it would be a firm “sell” signal, and the next target could be around $80.

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The liquidity of this cryptocurrency has risen dramatically over the last several weeks, and despite the current decline, NEO continues to attract attention from traders. Neo (NEO) is a platform in which users can issue and trade assets, and it is often called the Ethereum of China because it has similarities with Ethereum.

NEO’s popularity is growing, and NEO smart contracts support many common programming languages (Microsoft.net, Java, Kotlin, Go, and Python). Neo has released Neo N3 version on 16th March 2021 and according to the team of this project, numerous improvements have been applied in this version.

“The most significant upgrade in this version is the integration of NeoFS system into the Oracle module. Many bugs are also fixed, such as fixing a faulty logic where the state root witness could be null, checking the magic before enabling state root console commands, and fixing hash calculation logic and etc.,” the Neo team reported.

Neo N3 is a refined, simple, and powerful software version that will allow releases to developers without interrupting the regular user’s relationship with Neo’s core identity. Neo N3 was introduced after two and a half years of development, and it could make Neo the most complete blockchain development platform currently available.

Technical analysis: NEO can weaken even more in the upcoming days

The cryptocurrency market still remains under pressure, the price of NEO can weaken even more in the upcoming days, and maybe it is not the best moment for investing in this cryptocurrency. It is also important to mention that the price of NEO is correlated with the price of Bitcoin, and investors in this cryptocurrency should also have Bitcoin on their “watch list.”

Bitcoin has found strong support above $50000; still, Scott Minerd from Guggenheim Partners said that Bitcoin could again retest the $30,000 support level. On this chart, I marked important resistance and support levels.

The important support levels are $100 and $80, $120, $130, and $140 represent the resistance levels. If the price jumps again above $120, it would be a signal to trade NEO, and we have the open way to $130.

Rising above $130 supports the continuation of the bullish trend, and the next price target could be located around $140. On the other side, if the price falls again below $100, it would be a strong “sell” signal, and we have the open way to $80.

Summary

NEO has weakened from $133 below $100 in less than 24 hours, and the current price stands around $109. The current trend of this cryptocurrency remains bullish, but maybe it is not the best moment for investing in NEO.

Disclaimer:

Blockcast.cc does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision.