NEO price struggles over $10: can NEO bulls overcome resistance?
As bitcoin (BTC) gains momentum, NEO price is holding its own as it tries to regain its luster. NEO has bottomed near the $8.50 mark with a double bottom pattern.
Trading in a persistent downtrend, NEO is dipping below key moving averages, reflecting significant selling pressure. Since it hit a 52-week high near $24 in April 2024, it is 60% below that mark today.
NEO price analysis: will the bullish reversal work?
The daily chart shows a constant sell-off, with the token hitting its lowest point around $8 last week. It marked a 52-week low at $7.32 and built a hammer candle.
After that, the token started to accumulate and showed a bullish reversal from that point. However, the upper barrier of the trendline acted as an obstacle and the token struggled to overcome it.
At the time of publication, NEO was trading at $10.01, marking an increase of more than 5.89% over the past 24 hours. With trading volume up more than 34.21%, investors may be looking for a significant bullish opportunity.
There was a bearish crossover near the $12 mark as sellers aggressively took short positions. This affected the token's price performance as a significant drop in price was observed.
The RSI for NEO was 46, indicating a neutral price movement with low buying momentum. This value suggests that there is a balance between buyers and sellers and the price may consolidate in the near-term closed range.
TradeNomadic at X noted that NEO has reached a double bottom around $8.50. According to the analyst, the token could break through the $10 mark.
Similarly, the Bollinger Bands have converged, signaling a decline in volatility. While the balance sheet volume (OBV) showed a flat line indicating sustained selling pressure in the past.
Since last month, data on development activity has been on the rise and remained on a positive note, signaling increased optimism for growth in the ecosystem.
Open Interest on Futures (OI) remained unchanged, with a positive change of over 1.20% on the long side over the last 24 hours. Notably, OI fell to a three-month low of $21 million, reflecting declining buyer interest.
The Sharpe ratio is declining
The Sharpe ratio measures the performance of an investment relative to its level of risk by comparing its average return and volatility.
NEO's Sharpe ratio showed a negative value of -1.10, indicating that it is an asset with a low risk/reward ratio. This means that investors are reluctant to bet on it.
If the token fails to cross the 20-day EMA, it could fall to $9.20. Subsequently, it could fall to the $8 mark in the short term. Conversely, if it crosses the $10 mark, it could rush towards the 50-day EMA at $11.
