The 22nd largest crypto by market cap, Neo has enjoyed a strong year. Neo platform uses its own cryptocurrency, the NEO coin. It is very similar to Ethereum.
The developers have the advantage of building decentralized applications on the Neo blockchain. Though Neo and Ethereum blockchain technologies are similar, they have some differences. For example, NEO supports various programming languages because of NeoVM. However, Ethereum needs custom languages to perform.
However, Neo builds solutions on several other blockchains, such as Binance Smart Chain or Cardano.
Two days ago, the NEO Foundation published an open letter reflecting on the past four years of activity and plans for the next few years. It means they are maintaining transparency.
They also announced the Neo3 technology with sport file storage and D-ID (Digital or Decentralised identity) features. It is the third generation of their blockchain. Indeed, all this news has a substantial impact on the market.
NEO Trades Near Key Support Levels
Indeed, the Neo foundations presented that Neo has a great future like Ethereum. However, the weekly price chart is neutral. We can see an initial support level of $38, which stands above the next support level of $30.
However, $59 is a strong resistance level of Neo. If it breaks, it may go up to $115. Based on the technical analysis, it is a good time to buy NEO, with a stop loss of $28.
Interestingly, the coin has a strong resistance level of around $59, and it could not break it thrice in the last ten months. Indeed, it has a strong resistance level, but the three support levels are $25, $29, and $37, which reflects the price may break the $59 zone if it goes upward in a few months.
The MACD chart is neutral; the blue line is around the red line. On the weekly chart, it is hard to decide which way the price will move. However, the coin price is trading towards the support level so that you can buy at this point. Bollinger Band reflects a bearish signal, and it shows the next weekly candle may go down to the support level.
RSI is 48, which also presents a neutral view, along with Moving Average. MA is also going downward in the weekly chart. All these technical tools suggest neutral or bearish signals.
If you have Neo in your portfolio, then wait for a few weeks before buying more. However, if you do not have it and plan to add it to your portfolio, then it is the right time for initial buying.
