NEO price analysis: bearish price divergence forming
NEO price analysis indicates that bulls need to move price above the $12.00 level to avoid a major technical sell-off towards the $8.000 level.
NEO is trapped in an extremely tight price range, as the cryptocurrency continues to hover above its 200-day moving average
NEO technical analysis shows that bearish stochastic price divergence is starting to build across the daily time frame.
NEO medium-term price trend
NEO continues to tread water around the $10.00 level, as the cryptocurrency struggles to rally away from its key 200-day moving average.
NEO price analysis shows that bearish stochastic price divergence is present, and extends down towards the $8.00 level.
Failure to find fresh buying interest above the NEO/USD pair’s 200-day moving average could see the bearish price divergence reversed.
The daily time frame also shows that the cryptocurrency is trapped within a large triangle pattern, between the $14.00 to $3.00 levels.
If bulls can move the price above the $12.00 resistance level, then a rally towards $14.00 appears the most likely scenario.
NEO short-term price trend
NEO technical analysis over the short term shows that the cryptocurrency only has a bullish bias while the price trades above the $8.00 level.
The four-hour time frame continues to show that a bearish head-and-shoulders pattern remains in play.
The neckline and trigger point for the pattern is found around the $9.00 level. According to the size of the bullish reversal pattern the NEO/USD pair could fall towards the $6.00 level.
It is noteworthy that a move above $12.00 would invalidate the pattern and potentially cause a rally towards the $15.00 level.
NEO technical summary
NEO technical analysis shows that bearish stochastic price divergence has formed. A head-and-shoulders pattern is also present, which may be a bearish sign.