Here I'm seeing a Head and Shoulders pattern which has broken the "Neck-Line" and the most recent flag on the far right of the chart appears to be a "Bull Trap". The volume appears to confirm the pattern as well. Considering that there has been no major news or events regarding NEO which could possibly explain this kind of movement, I believe that the majority of the uptrend was a result of market-wide FOMO as BTC remained stable and many "ALT" / Superior tokens grew in value.
I believe that NEO will correct or complete retracement back to the 35 dollar level, consolidate around 40-42, and may continue it's uptrend in the following weeks.
Pay attention to Twitter feed's, Reddit, and be aware of any upcoming NEO events if you are looking forward to buying and selling opportunities.
Good luck.
-Van
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Also notice the increasing Price and *Decreasing* volume on the last shoulder of this chart. This is always a Bearish signal.
Of course, something could occur which changes this projection. But unless something does, I'm predicting a continued downtrend until yesterday's prices are met.
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It bounced! What's kind of funny is that after bouncing off the Neckline a second time the chart appears to have formed an Inverse Head and Shoulders (but with poor volume, can't confirm), which would mean the exact opposite of the analysis I gave yesterday.
Is this a bull trap? Or just a standard shake-out before greater gains are achieved?
Thanks for the analysis. I agree, it seems to be going down. Any opinion on ETH? Do you see it testing 700 again over the next couple of days, or do you think its going down too?
VanBenno
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@kash27, ETH looks a bit bullish to me. But when you double your price as quickly as ETH and Litecoin just did, there tends to be a pretty steep correction. But the new ATH eventually becomes justified and the next time that the markets test these ATH's there's a pretty strong chance that they will be surpassed again.
With ETH, I'm thinking it will trade sideways around 650 to 710 USD for a while. If BTC goes banana's and starts going up for no sane or logical reason (as usual) again the price of LTC,ETH, and most of the popular Alternative (superior) Tokens will decline as trading bots start selling them to get onboard with another BTC run.
*But* If BTC remains stable, or even gradually goes down, we'll see the price of these coins increase steadily. ETH could / should be valued at about 1200 USD by March / May 2018. LTC may reach 300 USD by then as well. Those are the "play it safe" coins.
I don't really invest in ETH or LTC so much anymore because the gains are slow and infrequent. I avoid BTC pretty much at all costs. Unfortunately, it's the only way to get most of the coins that are actually worth holding. So I'll ship NEO from one exchange to another, make the regrettable BTC purchase, and trade for the superior token. Right now I'm seeing ENJ as the mega-sleeper that's going to go up several thousand percent by 2018. Maybe even several hundred percent in the next 4 weeks.
kash27
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@VanBenno, Thanks for the reply. Yea youre right, though LTC is already 300. Ive always liked investing in NEO, its made massive gains in the past. But its hard to get the market right. Though at this point NEO seems to be due for the first wave of correction after growing its 5th wave. But its hard to say what will happen next