Neo offers an advanced infrastructure for decentralized applications with an interoperability facility to leverage the power of other blockchain ecosystems, so it is one of the popular platforms for developers and users with huge growth potential.
At the time of writing this analysis, the NEO price is trading around $6.94, down by more than 1% in the last 24 hours. In the last seven months, it consolidated between $7.5 and $10. After breaking the support due to the FTX liquidity crisis, it consolidates between $6.1 and $7.5. That means it has regained the previous support, which is working as a resistance. Indeed, it is a crucial time for NEO investors because if it sustains over $7.5, it will either consolidate or turn bullish for the long term.
On the other hand, if it cannot break the resistance, it may turn long-term bearish, which means it may go up to $4. On the daily chart, candles are forming in the upper BB while MACD and RSI are bullish, which suggests a good time to invest for the short term. If it breaks the resistance, the NEO price will hit $10 in December.
On the weekly chart, most candles are forming in the lower BB. Last year, it traded on the upper BB only in April. However, Neo has been downtrend, and the momentum continues even in December. It has formed lower highs and lower lows on the weekly chart with negative MACD and RSI, suggesting long-term bearishness.
It is interesting to note that NEO tested the $6 twice in the last five years, which is long-term support for the NEO price. If it breaks the level, it may go up to $4, which will be an ideal time to buy for the long term.
Based on the technical charts, we do not assume it will break the $6 mark this time so that you can accumulate NEO around $7.00 for the long term and trade for the short term with a target of $10. The market will be volatile in the next few months because the SEC and U.S. Congress are investigating the FTX liquidity crisis.
Any significant news may result in another outflow. However, Binance, the leading crypto exchange platform, has opened a recovery fund for fundamentally strong projects that provides confidence to crypto enthusiasts. It is tough to predict the next few months.
Still, if you invest long-term, Neo will provide a good return because it offers advanced technologies for DApps development that have already attracted a good user base.
