Neo Analysis: MACD Signals Bearish Divergence, Indicating Possible Further Plunge for NEO
Neo has experienced a great deal of volatility in its prices over the past week. After a strong start on Monday, where many expected the surge to continue, it unfortunately lost momentum and began a downtrend. This trend started on Tuesday when Neo opened at $14.6 and reached a high of $15.7 before facing strong rejection and dropping below its opening price. It closed with losses of over 8%.
Thursday saw another significant decrease for the altcoin. It started at $13.5 and peaked at $13.8 before retracing to a low of $12.6 and closing slightly higher with a 5% negative change.
The biggest loss of the week occurred on Friday, with Neo dropping to a low of $11.4 after opening at $12.7. The 24-hour period ended with losses exceeding 9%.
However, the bearish trend came to a halt on Sunday as the bulls attempted to recover the lost levels. Unfortunately, they were unsuccessful, only managing to climb above $12.5 and register gains of more than 9%.
While these losses may not fully reflect on the weekly scale, they are evident in the indicators. One concerning indicator is the Moving Average Convergence Divergence, which is currently showing an impending bearish cross. The 12-day EMA has been consistently decreasing and is currently on a downtrend. If market conditions remain the same, we can expect the bearish divergence to take full effect.
Additionally, a divergence is imminent, further indicating potential downtrends. The decrease in buying pressure is a clear sign of this. The Relative Strength Index has also reached a reading of 60, which is almost the lowest it has been in two weeks.
In conclusion, Neo has experienced a week of volatility with several significant decreases in price. The indicators suggest that further downtrends may be on the horizon.
