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- NEO a well known Chinese coin rallied after Hong Kong announcement to legalize crypto trading from June 1, 2023
- NEO crypto price shot up 46% on the weekly basis and formed a bullish trend reversal pattern
- NEO/USDT coin price sustained above 200 day EMA and prepares for golden EMA crossover
NEO coin price is trading with bullish cues and bulls seem to be grabbing the opportunity created by Hong Kong reports for their resident. Recently, reports say that Hong Kong is on the way to legalize the crypto trading effective from June 1, 2023 which has fueled the rally in the Chinese coins and also gained the attention from the worldwide investors. Currently, The pair of NEO/USDT is trading at $15.12 with an intraday gains of 3.07% and the 24-hour volume to market cap ratio at 0.8265
NEO rally fueled by the Hong Kong announcement sustainable?
NEO coin prices have shown a wild up move of 46% and formed a giant bullish reversal candle due to the recent announcement by Hong Kong to legalize the crypto buying and selling for their resident which has triggered the positive sentiment and investors rushed to buy at any price available in market.
In the mid of January, NEO prices managed to climb above the 50 day EMA which showed the initial signs of the short term reversal but unfortunately prices didn’t give the follow up momentum and got stuck into the narrow range consolidation. However, after a little bit of consolidation NEO bulls have succeeded to break out of the 200 day EMA indicating that the positional trend has reversed in the direction of bulls and buyers are expecting the upward momentum to continue in coming months.
On the other hand, NEO prices are near to the supply zone at $16.00 level which will act as an immediate hurdle for bulls and if market sentiment remains positive then probability of upside breakout will increase which can take the prices towards $20.00 mark. The technical indicators like MACD had generated a positive crossover indicating the bullish momentum to continue in coming days whereas the RSI at 87 denotes an overbought zone which might create trouble for the short term bullish traders. However, if any minor sell off triggers then $12.00 to $10.00 will act as a strong support level for the bulls.
Summary
NEO crypto prices had shown a surprising up move of 46% and huge buying volume is also visible which clearly shows that some genuine buyers have taken a long position and are expecting the prices to hold the higher levels. The technical analysis suggests that the recent up move looks sustainable and the reliable Chinese coins might show outperformance in the coming months.
Technical levels
Resistance levels : $16.00 and $20.00
Support levels : $12.00 and $8.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
