The NEO/USD bulls enjoyed a fast explosive jump to the upside over the weekend, after managing to escape a very mundane period of trading. The price was able to gain a big 16% during trading on Sunday. Price action had been stuck within a very limited range-block, from 28th November up to 6th January. This coming after a wild swing north between 16-24th December. The price had gained a whopping 66%, moving from $5 territory up into $9.
This most recent explosive jump has however seen a slowdown on Monday, as NEO/USD ran into a supply area. The sellers can be seen camped in the early $9 price region, where the bulls were forced to give up a run on 24th December. In terms of the zone, it tracks from $9.10 to $9.40. Aside from the most recent drop within this frame, it has caused problems since November 2018. Upside has been very much limited, being faced with rejection upon each time it comes into contact.
NEO Solid Fundamental Start to 2019
Last week the NEO foundation completed an upgrade, making their Virtual Machine (VM) deployable outside of the NEO network. As a result, this should provide further opportunities for developers, facilitating for them to deploy smart contracts. NeoVM will be enhance efficiency, facilitating a developer-friendly environment. The foundation has continued to make fundamental improvements with these milestone upgrades for NeoVM, the latest from 2.2.1 to 2.3.3.
The community has much anticipation with NEO for 2019 and will expect to see further improvements across the Network. Just a few days ago, the founder of the project, Da Homgfei, provided some encouraging words and insight for this year.
He said via Twitter: “in 2019 we will work harder to improve infrastructure. Personally, I’ll focus on modules that can be added to NEO incl. distributed storage, identity, layer2, to improve NEO’s crypto-economics, and to deliver the best developer experience”.
Technical Review – NEO/USD
Keeping in mind the cooling observed in the session on Monday, eyes will be on the prior range-block formation for support. This tracks from $8.40 down to $7.50; a failure to see buyers come back into play here could invite some chunky selling. The next area of support is eyed at just sub the $7 mark. Looking further south should the above fail to hold, then December gains will quickly be under threat. Bears would be able to force a move back down towards $5.50, where the price began its upside trend mid-December.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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