As the market recovered we saw in the last couple of day’s some of the cryptos increasing in double digits. Meanwhile, the price of Neo has been hovering around $20 which is why in today’s analysis we are going to look at the price context and examine what should be expected both short-term and on the long-term perspective.
Looking at the NEO/USD daily chart I have labeled this correction as a WXY after an impulsive wave that made the all-time high at $182 which is a 91.92% decrease to the most recent low at $15.2.
The correction is will most likely end as a triple three WXY correction as the last intermediate corrective structure looks five wave-ish.
I have labeled the most significant horizontal support levels on which the last intermediate wave Z could end, and in the upcoming paragraphs, we are going to further examine the upward movement target in order to conclude if the Z wave has ended on the $15 area or is there still some downside before the correction ends.
Zooming into the 4-hour chart I have counted the subwaves of the last intermediate WXYXZ correction.
As you can see according to my Elliott Wave count the last wave Z has more room for downside as this current upswing is only a 4 wave retracement. Zooming into the hourly chart we can see how much further the 4 wave can go up to before the 5 and the last wave to the downside starts.
On the hourly chart, we can see that the price action is forming a rising wedge which is a bearish sign so a breakout to the downside should start soon, but would that also mark the end of this short uptrend we are going to zoom further and examine the price context.
Looking at the 30 min time frame we can see that the breakout from the rising wedge to the downside has already started but as my count points out that is the third minuette wave ending with the expanding ending diagonal so short-term more upside is expected for the price of Neo as the 5th wave would only be a 3rd wave from the impulse on the minute degree and would result in a breakout from the downtrends resistance line from the 4-hour chart.
After that breakout occurs I would expect the price to retest it for support on the 4th wave and go further up between $26-$30. I just want to state that those are maximal values for this count to be valid, the price can go far lower than that before the minor 5 wave starts.
As for the wave 5 target, the next horizontal support level I see holding the price is at $9.83 which can be seen on the daily chart as the level from which the first impulsive move that lead to the all-time high. The next horizontal support level after that is at $3.84 but I doubt that the last intermediate wave Z would end there. This target would only be possible if the primary WXY correction gets extended by two more waves which we will see further down the line.
The post NEO Price Technical Analysis: Hovering around $20 but More Downside is Expected appeared first on Blockonomi.