As Bitcoin tries to regain the previous uptrend, other participants have already succeeded; the cryptocurrency NEO is one of those, achieving gains of up to 27% in the last 2 days.
As of this writing we see Neo going backwards, which brought it to a price of $ 20.61. To find out where it’s headed, we run the analysis below.
What drove NEO’s rise?
The most recent important news for the development of this project is the launch of the interoperability protocol Poly Network.
With this, an innovative alliance of interoperability protocols between platforms is launched Neo, Ontology and Switcheo.
The goal: to lay the foundation for the next-generation Internet, enabling greater cooperation and integration.
In addition to being a technical achievement, it is also a milestone for the adoption of Blockchain technology. The project is a pioneer in heterogeneous rather than homogeneous interoperability, seeking to overcome scalability challenges.
Poly Network supports Neo, Ontology, Cosmos SDK, and Ethereum, with plans to include Bitcoin.
On August 28, Neo’s association with Rosetta was announced, a technology framework powered by Coinbase, 100% open source that promotes collaboration, adoption and widespread use of different Blockchain solutions.
The purpose of this union is to create a standard for the integration of protocols in the nascent Poly Network, and it is probably the news that ended up taking NEO towards a new annual high.
NEO Technical Analysis: Medium-Term Trend
In the weekly time frame, we see how the price of NEO has just encountered an important resistance, and it is the one that worked as an obstacle to curb the bullish momentum.
The medium-term trend is clearly bullish and will remain intact as long as the support at $ 10.65 is not crossed.
The 8 EMA and 18-week SMA moving averages are crossed to the upside following this direction.
Currently momentum is developing, and no valid reversal of this trend has been made.
Short term trend
Turning to the daily chart to continue with the NEO analysis, we noticed a clear uptrend, followed by the 8 EMA and 18-day SMA crossed to the upside.
The 200-day SMA is also currently bullish, supporting the strong gains of the past few months.
The short-term trend will continue intact as long as the support at $ 17 is not crossed.
It looks like the short-term trend momentum ended after reaching the high at $ 22.9, but sooner rather than later we’ll see the next one begin.
In the NEO chart with 1 hour candles, we observe how the bears took control of the intraday trend of the cryptocurrency, managing to break supports continuously, after sufficient supply was achieved in the resistance zone around $ 22.
This intraday trend will be nothing more than the search for a valid retracement before continuing to rise.
It is possible that the area to look to collect demand is the neighboring one at $ 18,689. The 200 1-hour SMA may serve as dynamic support in this forecast decline.
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