NEO price analysis: NEO/USD drops below $50 for the first time in 2018, China keen on launching national cryptocurrency
|- Bearish momentum looms in the entire crypto market; NEO price gives in to record lowest lows in 2018.
- China plans to launch a national cryptocurrency next year; a digital asset suiting the requirements of the PBoC.
NEO price has dipped below $50.00 lows for the first time this year. The downside momentum has ensued in a bearish cryptocurrency market. The bulls lack the support to main the upside momentum while the sellers continue to have a field day.
China, on the other hand, is not relenting with its cryptocurrency crackdown position. It started by banning ICOS, then crypto related sites and went as far as freezing accounts utilized in cryptocurrency trading. The People’s Bank of China governor, Zhou Xiaochuan has said over and over again that cryptocurrencies are not recognized in the country. On the contrary, the same bank is making plans to roll out its own cryptocurrency that will be called the Digital Currency for Electronic Payments-DCEP. According to the governor, this currency will be developed to suit the needs of China as a country by bringing “convenience, rapidity, and low cost in a retail payment system while taking into account security and protection of privacy.”
NEO price technical picture
The 50 SMA is currently working as a support line for NEO/USD, while the 100 SMA is the short-term resistance on the upside. The 23.6% Fib retracement level of the previous swing high of $78.00 and a low of $49.25 will cap the upside gains at $56.00. The price lacks enough momentum to push above the resistance levels. The immediate support level for NEO USD is at $49.00; however, if the price breaks below this level, then NEO could record more negative milestones.
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