If you are cautious about your position size and believe in the Neo project over the longer term, then you could possibly start to dip your toe in the water.
Neo fell again on Monday to kick off the week on the wrong foot. The market has seen a significant amount of interest near the $20 level, but it is also worth noting that we have dipped below there. That is exactly what has happened over the last 24 hours again. Ultimately, this is a market that I think will find reasons to finally break down, not the least of which would be the fact that monetary policy is tightening, so it is unlikely that a lot of risk is on the minds of traders.
The markets will continue to focus on Bitcoin as well, as the massive currency will move the entire crypto markets in general. If Bitcoin falls, it will be very difficult for smaller altcoins to strengthen such as Neo. The Neo price has been falling for what seems like a lifetime, and now it looks as if we are threatening the $17.50 level underneath, which is a significant support level. If we break down below there, then it is likely that we will go even lower, perhaps reaching down towards the $15 level.
At this point, rallies should continue to be sold into, as this is a very strong downtrend. If we were to break above the $25 level, then I think it will become a longer-term situation where the market could go much higher, but it is difficult to imagine that being the case, due to the fact that the entire crypto space is struggling in general. Unless something fundamentally changes with the overall Neo ecosystem, I just do not see how this market will take off.
At best, we may be forming some type of consolidation area where people start to accumulate Neo, but I do not necessarily believe that it is likely to be the case anytime soon. In general, this is a market that I think will continue to see lots of volatility, but if you are cautious about your position size and believe in the Neo project over the longer term, then you could possibly start to dip your toe in the water. I would not trade with large-sizes unless, of course, it was to the short side, meaning that you are trying to profit from falling prices. Ultimately, this is a market that I do not like.