NEO is attempting to regain its position at the critical $10 level despite a prolonged downtrend and substantial selling pressure.
Current NEO Price Dynamics
NEO, under significant selling pressure, has fallen below key moving averages. The token hit a 52-week low at $7.32 and then formed a hammer candlestick on the daily chart, indicating a possible reversal. At press time, NEO was trading at $10.01, up 5.89% over the last 24 hours, with trading volume surging by 34.21%.
Technical Analysis Indicators
Near the $12 mark, a bearish crossover was observed as sellers aggressively took short positions. This caused a significant price drop for the token. The Relative Strength Index (RSI) for NEO was at 46, indicating neutral price action with low buying momentum. The Bollinger Bands converged, signaling decreased volatility, while the On-Balance Volume (OBV) showed a flat line, indicating sustained selling pressure.
Risk-Reward Ratio
NEO's Sharpe Ratio observed a negative value of -1.10, indicating low risk-reward potential. This means that investors are not willing to bet on it. If the token fails to cross the 20-day EMA mark, it could slip to $9.20 and subsequently to $8 in the short term. Conversely, if it crosses the $10 mark, it might reach the 50-day EMA at $11.
The situation around NEO remains tense as the token tries to overcome key resistance levels. Further price movements may depend on consolidating current positions and potential changes in trading dynamics.
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