Two cryptocurrency analysts say an altcoin that fell to the wayside in the long crypto winter may be ready to pop.
TraderXO says NEO could break out and track the rise of Ethereum in 2020. ETH began the year at $130.47 and is now $270.74 at time of publishing – an increase of 107%.
NEO, a rival smart contracts platform, is often referred to as the “Chinese Ethereum.” It started 2019 at $8.72 and is currently up 75% year-to-date, at $15.29.
In order to gain momentum, TradeXO says NEO will first have to break through a line of resistance at $16.78.
“NEO – Is it a sleeping giant? Certainly looking forward to picking some up on significant enough pullback if the opportunity arises.
Will be following this closely for any substantial announcements in 2020.”
The altcoin is also on the radar of analyst and founder of Texas West Capital, Scott Melker, who says NEO just formed a bullish inverse head and shoulders pattern.
“Holy mother. Confirmed breakout of an inverse head and shoulders that has existed for almost 10 months.
This should pull a 50% move up just on that pattern. Expecting to see NEO take flight.”
$NEO
— The Wolf Of All Streets (@scottmelker) February 15, 2020
Just added heavily to my position at this retest of former resistance as support. I see no reason to turn bearish on a setup this massive (see previous tweets). pic.twitter.com/VOoQ9SVQ4y
Despite the bullish outlook, Melker warns NEO could continue to fall lower in the short term along with the rest of the crypto market, which is in the red at time of publishing.
The altcoin market at large is typically at the whim of Bitcoin’s price movements, and it remains to be seen if BTC really is in the midst of another long-term bull run. The leading cryptocurrency has stalled after breaking through $10,000 last weekend and surging past $10,400 on Wednesday. It’s currently down 2.66% at $9,986.
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