Originally authored by: CryptoMedication
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NEO Price USD
Here, you can see that $NEO is clearly in a downtrend.
However, if you go to the ONE WEEK chart (I rarely use this chart when looking at crypto because of how fast it moves) — there appears to be a HUGE bull pennant that formed (continuation pattern). Based on what I’m seeing, we’re only about a week or two away from seeing if this trend continues.
If so, that would be a powerful indicator that $NEO is seriously due to skyrocket soon.
“How do you know if something is a bull pennant?”
First, you need to know what the hell it is. It’s a chart pattern, so, you’re going to identify it by simply looking at the chart.
The pictures above give a great idea of what a constitutes a pennant/flag and how to tell the difference between bear/bull.
That was an excerpt of the rules for determining this chart pattern formation.
Okay, so this is the 12H chart for $NEO and I posted this for a reason. It would take way too long for us to confirm that Pennant formation off of the 1-week chart, so we need to be more intuitive about what’s going on.
So, the best thing for us to do moving forward is to see when the trend breaks on the 12H chart. Why? Because if the trendline is broken on the 12H chart, then we know that the price will most likely continue to rise from there. We can make the inference (based on what $NEO looks like on that weekly chart), that if it breaks trend on the 12H or daily chart, that it most likely will give us a green candle on the weekly chart that will result in the breaking of the bull pennant itself.
So, the question that we need to ask ourselves here is how we can at least anticipate when $NEO is going to actually break this trend without getting screwed in a bull trap.
So, the first thing that I check is volume. Right now its basement level low. However, we got some green candles showing up on the chart.
In general, the USD price has been fairly ambivalent for weeks. Even though we’re in a downtrend on the smaller TF charts, its still in an uptrend on the weekly chart. So, a spike in volume could result in a lot of upward momentum. It doesn’t look like there’s been mass sell-offs on this coin yet. But let’s check and confirm that.
This is the accumulation/distribution for $NEO smoothed over with the HMA (9)*
Here’s an illustration of that uptrend in accumulation. So, that’s always good news. Shows that folks, in general, are still holding on to this coin — and that’s honestly corroborated by the fact that the price hasn’t really fallen off a cliff like the price of some other cryptos have.
As you can see from above — there’s a truckload of events, competitions and other things going on for $NEO — so, it looks like the dev team is pretty active right now and looking to really keep this coin moving, which is always a good thing.
Correct me if I’m wrong too but aren’t these competitions linked to the alleged joint ideal that they’re hosting with Microsoft?
If so, I’d imagine that this would go over pretty well for $NEO as well.
Here’s some more critical information about $NEO:
Here’s the roadmap for On-chain — http://www.onchain.com/en-us/
So, obviously, considering how draconian and strict that the Chinese government has been in relation to virtually anything that has anything to do with cryptocurrency, this would be a pretty huge accomplishment for them.
I’m not really sure how they’re even able to operate the way they do now — but everything I’m looking at tells me that $NEO may not be a bad idea in the short/long-term. Definitely, a great investment in the short-term.
This meets my seal of approval.
*HMA = Hulls Moving Average
Disclaimer: I’m not a financial manager/advisor/lawyer/genie or anything else that would make me personally liable for anything that you decide to do with this information. Invest at your own risk.