Neo Analysis: NEO may Plunge Further as MACD Hints at Bearish Divergence

Neo prices over the last seven days are one filled with a lot of volatility. During the previous intraweek session, it saw massive decreases that saw it lose key supports.

After a splendid performance on Monday, many expected the surge to continue. However, it lost momentum and started a downtrend.

This trend started on Tuesday as NEO opened at $14.6 and surged to a high of $15.7. It faced strong rejection at the marked dipped below its opening price. It dropped to a low of $13.2 and closed with losses of more than 8%.

On Thursday, the altcoin saw another significant decrease. It kicked off at $13.5 and peaked at $13.8. Like the previous intraday session, it retraced to a low of $12.6 and closed a little higher, indicating a 5% negative change.

On Friday, NEO registered its biggest loss of the week. It dropped to a low of $11.4 after it started trading at $12.7. The 24-hour period ended with losses exceeding 9%.

The bearish trend stopped on Sunday as the bulls tried to recover the lost levels. However, it failed in this bid, as it only climbed above $12.5 and registered gains of more than 9%.

While these losses do not fully reflect on the weekly scale, they did on indicators. Let’s go over some of these metrics and what they are saying.

Neo has an Impending Bearish Cross

The chart above depicts three indicators. The Moving Average Convergence Divergence is currently raising concerns.

Following the consistent decrease in value, we noticed that the 12-day EMA arched and id currently on a downtrend. If market conditions remain the same, we may expect the bearish divergence to take full effect.

A divergence is also imminent. All these events are indications of further downtrends. The decrease in buying pressure is a clear indication of this.

Latest readings on the Relative Strength Index say its at 60; which is almost the lowest it attained in almost two weeks.

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