Neo Tests the $20 Level

The market is more likely than not going to have to make a bigger decision sooner or later, but until then, you simply wait for the market tell you which way it is going to go.

Neo has gone back and forth during the trading session on Monday as the $20 level continues to be important. The $20 level will continue to be a large, round, psychologically significant figure that a lot of people will be paying attention to, and also it is worth noting that there is a lot of support just below there as well. As you can see from the previous action, there has been a lot of buying pressure underneath the $20 level that has kept this market somewhat afloat. The market will continue to pay close attention to that range, and if we break down below the $17.50 level, then it is possible that Neo goes looking to reach the $15 level.

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The 50 Day EMA currently sits at the $23.25 level and is drifting lower. The 50 Day EMA is an indicator that a lot of people will pay close attention to, and if we were to break above there it is likely that Neo would recover just a bit further. After that, the market then goes looking to reach the $25 level, perhaps even the $29 level after that.

Keep in mind that Neo needs a little bit of help from the major coins in order to have people look for reasons to get involved here. Neo is essentially far out on the risk spectrum of a market that is pretty far out on the risk spectrum. If Bitcoin were to suddenly rise, then it is very likely that Neo could get a little bit of a boost. The market continues to see a lot of noisy behavior in this general vicinity, so I think the next impulsive candlestick will be crucial.

The other part of the equation of course is a US dollar, and if it starts to strengthen quite drastically, it could have a negative effect on the Neo market. Overall, this is a market that I think continues to see a lot of noisy behavior, and therefore you have to keep that in mind. I would not go “all in” right away, but you could start to build a small position if you get a little bit of clarity in this market. The market is more likely than not going to have to make a bigger decision sooner or later, but until then, you simply wait for the market tell you which way it is going to go.