Crypto in general looks horrible right now and Neo is going to get crushed every time it tries to rally.

Neo has fallen slightly during the trading session on Thursday as we continue to see crypto get hammered. Neo is pretty far out on the risk spectrum, so it is difficult to imagine a scenario where it would suddenly take off without some type of help from the outside. The most commonplace of help would be Bitcoin and Ethereum, both of which are at least trying to stabilize, but it is more likely than not going to be a situation where we will ultimately have plenty of sellers.

There is a lot of fear in the world right now, and that does not bode well for crypto, and therefore it is difficult to imagine a minor coin like this suddenly attracting a lot of inflow. If we do rally from here, the market will more likely than not see quite a bit of resistance at the $16.50 level, which is where we had previously seen so much support. “Market memory” could continue to come into the picture, so ultimately this is a simple “fade the rally” type of scenario.

The alternate scenario is that we simply break through the bottom of the candlestick for the trading session on Thursday, but if it did it is likely that the market could go all the way down to the $9.00 level. The 50-Day EMA is sitting at the $20 level, and we would need to break above there before I could even consider buying Neo. Crypto in general looks horrible right now and Neo is going to get crushed every time it tries to rally.

On the downside, it is likely that we would see this market go all the way down to the $5.00 level on a breakdown, with the $7.50 level possibly offering a little bit of support. That would be psychological at best, so it is hard to imagine that it would hold for anything more than a short-term bounce. Once we break through there, I anticipate that even more money would go flowing to the downside. Bitcoin has broken through the $30,000 level, although it is trying to stabilize. If we were to break down below the $25,00 level, then Neo will get the brunt of selling as well due to the fact that it is such a small market.

I think we are looking at a situation where you cannot buy Neo until we break above the 50-day EMA on a daily close.

Neo fell ever so slightly on Friday in relatively quiet trading. Looking at the chart, the $16 level continues to be supported, and the action on Friday will have only reiterated that. The market continues to see this area as important, so you have to pay close attention to it. The market bouncing from here does make quite a bit of sense, but I do not necessarily think that it is going to change anything.

When you look at this chart, the $16 level being broken below could open up the possibility for a move down to the $15 level. The $15 level offers a bit of psychological support as well, so if we were to break down below that level, Neo will almost certainly break apart. The market will be highly influenced by the larger coins in the crypto markets such as Bitcoin and Ethereum as per usual, so you will have to pay attention to those markets as well.

In fact, you could say that Neo looks a lot like Bitcoin at the moment, as we have seen Bitcoin turn around to show signs of support. The $19.50 level above is significant resistance, right along with the 50-day EMA in the Neo market, so I do think that it is probably only a matter of time before we see sellers jumping into the market. I would be more than willing to short the first signs of exhaustion on a daily candlestick, but until then I think it is simply going to be a very noisy market. Nonetheless, I think it is only a matter of time before Neo falls, as it seems to be out of favor. It is probably worth noting that the market has tested this area multiple times, so I think we will see a little bit of a breakdown. It is also worth noting that we have been in a downtrend for some time, so I think we are looking at a situation where you cannot buy Neo until we break above the 50-day EMA on a daily close. If that were to happen, then it is likely that we go looking toward the $25 level, perhaps even the 200-day EMA after that.

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.

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.

In general, $20 will determine the overall health of this market.

Neo drifted lower on Friday as we continue to see negativity in this market. We are below the 50-day EMA, and now are threatening the $22 level. If we break down below the $22 level, then it is likely that we could go looking to reach down to the $20 level. The $20 level has been supported more than once, and it will be interesting to see whether or not it holds.

Keep in mind that Neo is far out on the risk spectrum, so you need to see an environment where people are willing to put money to work. Because of this, you need to pay close attention to stock markets, as well as currency markets. They can give you a bit of a “heads up” as to whether or not people are willing to put money into riskier assets such as Neo. The market recently had broken to the upside but then pulled back to show signs of hesitation. The fact that we have pulled back the way we have suggests that we are in fact going to go looking to reach the $20 level underneath.

It is also worth noting that we are closing at the very bottom of the candlestick, so it does suggest that we are going to drop further, due to the fact that traders are comfortable being short of the market heading into the close. That typically tells you that they are willing to hang on to the position, so it is likely that the market will simply follow right along with it.

If we were to turn around, the 50-day EMA offers resistance, and a break above there would be a bullish sign. At that point, I would anticipate that the market could go looking to the $30 level as a target, with the 200-day EMA racing towards it. Nonetheless, you need to pay attention to the larger crypto markets, because they can give us a sign as to where this market may go given enough time. Keep in mind that Neo should be approached with caution, as the market can be quite volatile. Nonetheless, it does look like Neo has enough buyers underneath that it might open up a possible range-bound trading situation. In general, $20 will determine the overall health of this market.