BITTREX:NEOUSDT is finally starting to have enough data on longer timeframes to be of use. This analysis uses the weekly chart.
In this example, I've marked all of our prior, significant, bullish price shears and their respective corrections.
RED ZONE - 76% pullback
GREEN ZONE - 42.5% pullback
PURPLE ZONE - 39.5% pullback
The colored zones moving ahead represent hypothetical pullbacks of corresponding percentage from our current all-time high.
While the "August avalanche" is our largest pullback (a whopping 76%), our most recent corrections of < 50% have me thinking that, when we correct (it's a matter of time, which is an admittedly nebulous concept in the crypto-sphere), we will correct proportionally.
I can very easily see a correction of ~40%, considering that our last major resistance was around to $48, $50 price point. A correction like this would also bring us to or around the 0.5 Fibonacci retracement level, which would be a critical point for Neo to return to its upward trend.
Finally, there is a distinct possibility we could see a pullback like we had in August. It isn't on the chart (too cluttered), but two corrections we've seen (red and purple) have both touched their respective 0.236 Fib levels on their corrections. The red zone even broke through, making something of a miraculous recovery after the August avalanche in price. Our green zone, however, retraced almost exactly to the 0.5 Fib level, which is what I'm personally hoping for on this next correction.
Perhaps Neo will find an alternating rhythm on its journey to the moon; bull run, followed by a major dump, followed by a bull run, followed by a healthy 0.5 Fibonacci bounce, followed by a bull run, followed by a major dump, followed by a bull run, followed by...
Time will tell (but hopefully a healthy 0.5 Fibonacci bounce).
Neo has passed its freshman initiation, and this recent bull run above $50 is quickly cementing its place as a competitor for other blockchain platforms. It has also announced a slew of projects and partnerships in the preceding month. More will come in 2018, according to all Neo outlets.
Thanks for the analysis. Very detailed and to the point. Do you personally see this coming within the next couple of months, or are you making this analysis as a hypothetical?
fittsjk
⋅
@kash27, it's all hypothetical until it happens! No, but seriously I think it'll happen over the spring, contingent upon continued correlation to Bitcoin. Which is to say, when we finally see that big ol' Bitcoin correction that's been "overdue" since $8,000, I would expect Neo to follow the move. Many top altcoins do this, and despite the uniqueness of NEO's sphere of operation, it has still been correlated strongly with BTC. Elliot Wave analysis looks like the early spring for this, but no one can know for sure, especially now that institutional money is entering the game.