The value of NEO earlier went below an ascending trendline against Bitcoin, showing that a longer-term downward trend is in order. NEO is presently trading in a descending channel and the value of NEO has just bounced off the resistance. Though the 100 SMA is over the long-term 200 SMA on the time frame of four hours, so the least resistance path is still on the upper side.
In other words, chances are the uptrend could still resume. But again, the gap is closing into the momentum signal weakening bullish. The trading value has also dropped below the dynamic inflection point of the 200 SMA to a signal that sellers are taking over.
Relative Strength Index
Relative Strength Index is moving towards the oversold levels to signal bearish exhaustion, and increasing further could draw buyers back into the market. Also, stochastic made its way to the region of oversold to show a return in purchasing pressure.
What Will Happen If the Downtrend Continues?
If the downward movement continues, the extension levels of Fib on the hourly chart could act as the next downside targets. The 50 percent extension lines up with the low at 0.008020 then the 79 percent mark lines up with downward channel support. The complete extension is situated at 0.007740.
On this time frame, the long-term 200 SMA is above the 100 SMA to indicate that the least resistance path is to the downside or that the tradeoff could continue. The relative strength index is reducing to indicate that sellers are in charge while stochastic is moving downwards also. Both digital currencies have had their shares of highs and lows recently, but the dominance of Bitcoin in the crypto market has made it more bullish.
There are no key catalysts scheduled from both bitcoin and NEO in the next couple of days, but there have been a couple of updates that could favor bitcoin.