Introduction
In the world of Neo Crypto News, 2022 is a year that will be remembered for all the wrong reasons. The altcoin has been on a downward spiral for months now, and there seems to be no end in sight. In today’s article, we’ll take a closer look at why the altcoin is falling apart and what might happen next.
Neo Struggles Today as it Drops from $140 to $20 Handle
Neo initially tried to rally on Wednesday but gave back gains rather quickly as we have fallen back towards the $20 level. While it is difficult to see, we did end up forming a bit of a shooting star, but in a very tight range. Bitcoin and Ethereum both fell during the day, so it certainly makes a bit of sense that Neo would struggle. However, Neo has bigger problems as it has dropped from a high near the $140 level in May of last year to reach down to the $20 handle. At this point, it has a lot of work to do to prove itself.
Neo: A Reasonable Alt Coin to Trade?
At the very least, it needs help from its larger counterparts such as Bitcoin and Ethereum if they hope to make a bigger move. After all, this market tends to be more of a follower than a leader, as its days of prominence have slipped away. That being said, it does make a reasonable alt coin to trade if crypto starts to turn things around. After all, traders will branch out into other assets to pick up bigger returns, and Neo is most certainly a candidate for “hot money” to flow into. Whether or not it is sustainable will completely depend on the rest of crypto in general. Quite frankly, I do not know that it has enough momentum to stand on its own in the short term.
Neo’s Price Struggles in a Sea of Green
It is worth noting that the 50 day EMA currently sits at the $26.76 level, so if we were to break above the highs during the trading session on Wednesday, and if we have some type of confirmation from other crypto markets of bullish action, then you might be able to have a short-term trade to reach towards the 50 days EMA. That being said, I suspect that you would probably have a pretty quick pullback because I do not know how many people would trust Neo. When you start to change the overall trend, you typically need to see a lot of back and forth and choppy action to fill out an accumulation phase when people start to pick up an asset at lower prices. We do not have that quite yet, and the volume is inferior.
Conclusion
It isn’t easy to see a clear path for Neo at this point. The altcoin has dropped significantly in value, and it appears that it will need help from larger counterparts to make any significant moves. Furthermore, the 50 day EMA currently sits at the $26.76 level, so there is potential for a short-term trade if we can break above the highs during Wednesday’s trading session. However, I suspect that traders would quickly pull out of such a position as volume remains low, and faith in Neo diminishes.
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