NEO surged 115% since the middle of December of 2019, a real rampage. Besides the meaningful bullish drive, a well-known technical NEO analyst thinks that the crypto has the potential to grow even more so let’s find out more in the upcoming NEO news.
A renowned trader and NEO analyst in the cryptocurrency community, Scott Melker, not long ago pointed out that the NEO/BTC trading pair broke out of an inverse head-and-shoulders- pattern. This poses a trend reversal formation that started to develop on the 1-day chart of NEO for a period of ten months, according to Melker. Now that NEO breaks the neckline point, Scott Melker anticipates a 50% growth that can take NEO to a high of 2,100 satoshis or something about $0.20.
“This is still my favorite long term setup right now, which is saying a lot. Price broke out of the massive inverse head and shoulders and is testing horizontal resistance. Volume is rising daily, price tends to follow. Flipping 1528 to support should set this on fire,” said Melker.
Because of the extended time period that was needed for the development of the inverse head-and-shoulders pattern, Scott Melker says that there is: “no reason to turn bearish on setup this massive.” But a daily candlestick close below the right shoulder at 1,150 staoshis can invalidate the bullish attitude. A glans at the NEO/USD trading pair also presents the potential for a preposterous grow. Grounded on its 1-week chart, this crypto looks like it is forming in an ascending triangle. The development of this technical pattern is a causal consequence of the price movements of NEO. Along with the swing highs, a horizontal line was produced, and also alongside the swing lows, a trendline appeared.
While, NEO can still pull back to the hypotenuse before it breaks out, at last, the $17.60 resistance level is representing an important price point to which attention should be focused. Progress above this price barrier can be the cause for a 70% growth that will directly result with the price of $30. Jesse Livermore, a well-known master of day trading, once said:
“Do not anticipate and move without market confirmation. Being a little late in your trade is your insurance that you are right or wrong.”
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