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As Bitcoin (BTC) picked up pace, NEO price is holding its own, trying to regain the shine. NEO bottomed out near the $8.50 mark with a double bottom pattern.
Trading in a consistent downtrend, NEO is sailing below the key moving averages, reflecting significant selling pressure. Since it marked a 52-week high near $24 in April 2024, it is 60% below that mark today.
NEO Price Analysis: Will the Bullish Reversal Triggers?
The daily chart shows a consistent selloff and the token meets the lowest region $8 mark last week. It marked a 52-week low at $7.32 and plotted a hammer candlestick.
Afterward, the token began to accumulate and exhibited a bullish reversal from there. Still the overhead trendline barrier acted as a hurdle and the token struggled to surpass it.
At press time, NEO was trading at $10.01, noting a rise of over 5.89% in the last 24 hours. With the trading volume surging over 34.21%, investors could be looking for a significant bullish opportunity.
Near the $12 mark, a bearish crossover was observed as sellers aggressively made short positions. This impacted the token’s price action as a significant price fall was noted.
The RSI for NEO stood at 46, indicating a neutral price action with low buying momentum. This value suggested that there is a balance between the buyers and sellers, and the price could consolidate in a closed range ahead.
@TradeNomadic on X, noted that NEO made a double bottom around the $8.50. The token could be smash the $10 mark per the analyst.
$NEO pic.twitter.com/q9xJdMYioj
— Trading Nomadic (@TradeNomadic) August 8, 2024
Similarly, the Bollinger Bands converged, signaling a decrease in volatility. While, the On-Balance Volume (OBV) showed a flat line, conveying sustained selling pressure in the past.
Since last month, the development activity data was moving upward and stayed on a positive note, which displays an increased growth optimism in the ecosystem.
Its Futures Open Interest (OI) remained flat, with a positive change over 1.20% on the long side in the past 24 hours. Notably, the OI slipped to a three-month low at $21 Million, reflecting lowered buying interest.
Sharpe Ratio Declines
The Sharpe Ratio assesses how well an investment performs relative to its risk level by comparing its average return and its volatility.
NEO’s sharpe ratio observed a negative value of -1.10 which indicates that it is a low risk-reward asset. It means that investors do not want to bet on it.
If the token fails to cross the 20 day EMA mark, it could slip to $9.20. It could subsequently fall to $8 mark in the short term. Conversely, if it crosses the $10 mark, it might sprint toward the 50 day EMA mark at $11.