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NEO price has been trading with a bullish prejudice since the onset of 2023, soaring almost 90% year to date. Despite the bears’ efforts to recover the market, the bulls tightened their grip on the token. The pace was slow until four days ago, when the token finally exploded 30% to record an intraday high of $12.15 on February 20.
At the time of writing, NEO was auctioning for $11.49 after it had gained 17.63% on the last day. With this, the token’s market cap soared 17.76% in the same period to $814.07 million. This places the token at #68 on the CoinMarketCap list.
There was also a lot of trading activity on the Neo blockchain as the 24-hour trading volume was up 477.84% to $292.19 million in 24 hours. With this track record, NEO has made it to the list of top-ten performers in the past three days within the Top 100 market cap coins.
https://twitter.com/HODLstarter/status/1627558691607130112
NEO Price Soars On General Positive Sentiment In The Crypto Market
The Neo blockchain platform is often referred to as the “Chinese Ethereum.” It supports smart contracts and decentralized applications, touting itself as a “rapidly growing and developing” ecosystem committed to becoming the foundation for the next generation of the internet. It aims to deliver a new economy that meets users where digitized payments, identities, and assets converge.
While the reason for the price surge is not immediately clear, all signs point to the current general positivity in the market because there is no significant news or developments on the platform.
Amid court scandals and market volatility, cryptocurrency continues to survive because it operates autonomously of any corporate entity. The FTX implosion and the collapse of crypt firms like Celsius Network and Voyager crippled the market for some time when it destabilized investor confidence. However, it did not impede its ability to perform. The emergence of new cryptocurrencies, efficient payment options, and investments has delivered many milestones over the years, with Neo becoming one of the most unique projects thus far.
Incoming Bull Market For NEO Token Following A Pending Golden Cross
At the time of writing, NEO was trading at $11.49, with bulls boasting a four-day lead that has catapulted the price by 30%.
As bulls plan more gains, the price was confronting the immediate resistance at $12.17 that has petrified NEO price in the past. A daily candlestick close above this level would increase the chances for the Chinese Ethereum to record more profits for investors.
If bulls manage to increase their buyer momentum past this level, it will clear the path for them to target higher price levels. In this regard, the first logical move would be the 108% Fibonacci retracement at $13.02, after which the price could scale higher to revisit the 154% Fibonacci retracement at $16.
In highly ambitious cases, increasing buying appetite among NEO bulls could tow the price to the 182% Fibonacci retracement at $17.81. Such a climb would signify a 54.73% increase from the current levels or a 193.07% ascent from the year’s lows.
NEO/USD Daily Chart
The upward-moving Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators support the positive outlook for the NEO price. These, coupled with the histograms soaked in green, showed that bulls were leading the market. The MACD was also moving in the positive region above the neutral line, adding credence to the positive thesis.
The NEO price also enjoyed strong support downward courtesy of the 200-day, 50-day, and 100-day Simple Moving Averages (SMAs) at $8.23, 8.14, and $7.43, respectively. These were possible locations for bulls to gather strength and refresh their buying momentum before scaling another attack northward.
Notice a pending golden cross on the NEO/USD daily chart (above) that will be validated once the 50-day SMA crosses above the 200-day SMA. A golden cross is a technical formation that indicates the potential for a major rally. It occurs when a short-term moving average (in this case, the 50-day SMA) rises above a long-term moving average (in this case, the 200-day SMA).
If the current price trend continues, a bull market may be underway for the NEO token.
On the other hand, given the position of the RSI at 77, the NEO token was overbought. This means buyer momentum could wear out soon, and a pullback would take effect. Besides being overbought, investors could be tempted to book early profits given the enticing price move thus far. This would initiate a sell-off.
In such a scenario, the NEO token supply would increase in the market, causing the price to drop. The first logical move south for the price would be to revisit the 66.7% Fibonacci retracement at $10.35 or lower to the 43% Fibonacci retracement at $8.82. Worse, the price could shrink to the 23.6% Fibonacci retracement at $7.56. These were critical levels of supplier congestion.
In extreme cases of a seller-dominated market, NEO price could dip lower to the $6.04 swing low. Such a move would represent a 47% plummet from the current price.
NEO Alternative
While the market continues to favor the NEO token, consider FGHT, the native token of the move-to-earn (M2E) ecosystem Fight Out. FGHT token is doing well, having raised upwards of $4.4 million in presale token sales.
https://twitter.com/Fight0utCS/status/1627298329548800001
With a few hours until the end of the stage, now is an excellent chance to buy the token before the price increases. Buying FGHT provides an entry into the Fight Out community where you can compete favorably with other community members and earn rewards in the Fight Out Metaverse. You can also create your avatar, complete your Fight Out training and become the undisputed Fight Out Champion.
Watch this video to see what analysts say about FGHT token in 2023.
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