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.

NEO/USD intraday 30’ chart

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram