NEO Price Pulls back From February’s Explosive 102% Breakout As the China Narrative Cools Down

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February has been a hectic month for the cryptocurrency industry, starting with a 0.25% hike in interest rates by the United States Federal Reserve. The market has also been feeling the pinch as regulators from the US push for heightened oversight of the industry – perhaps to prevent a repeat of the 2022 crises, like the FTX collapse and the Terra Luna ecosystem’s crash. However, certain tokens, especially those hailing from China performed well in February, including NEO price, which is trading 52% higher over 30 days.

NEO alongside other Chinese tokens like Conflux and VeChain exploded in February following reports that Hong Kong is set to officially allow buying and selling cryptocurrencies even for retail investors. The announcement set tokens like NEO on a moon-bound flight capitalizing on what came to be known as the “China narrative.”

Crypto experts believe the Chinese coin narrative will not die down soon, considering the new set of regulations is expected to commence on 1 June 2023. The China narrative follows selected rallies fueled by the emergence of Artificial Intelligence software like ChatGPT.

Social media platforms like Twitter continue to drive the China narrative with some reports showing enormous liquidity injections by the People’s Bank of China (PBoC). Experts argue that China is ready to embrace crypto and the narrative is not a gimmick.

(2) Crypto熊猫 on Twitter: “The China easing narrative is not some imaginary garbage Look at the liquidity injections China is ramping up in Feb – most recent 835B CNY via reverse repurchase Monie printer goes brrrr from the EAST oh, sorry US inflation, China exporting moar” / Twitter

Levels To Watch for NEO Price In the Short-Term

NEO price is down 3.7% on the day to exchange hands at $12.61 at the of writing. After the 102% rally in February from $7.78 to $15.73, bulls needed a breather before continuing with the upswing. The retracement to $11.00 was later fueled by profit-booking activities, which rendered tentative support around $12.50 ineffective.

A minor rebound from $11.00 propelled NEO to $13.86 but selling pressure across the board is still dominant across the crypto market. NEO bulls must purpose to keep support around $12.50 intact, a move that would prevent declines from weakening the buyer congestion at $11.00 – reinforced by a lower falling trend line.

NEO price eyes $30.00
NEO/USD daily chart

Investors should consider filling their bags following this pullback due to the presence of a golden cross. This key chart pattern is known for its bullish impact on asset prices and manifests as the 50-day Exponential Moving Average (EMA) (line in red) flips above the 200-day EMA (line in purple).

Therefore, with a little push to the upside, NEO price would soon resume its uptrend – this time targeting highs at $30.00. However, traders could start cashing out at $20.00 but stubbornly bullish investors may want to wait until NEO reaches higher levels of $27.00 to $30.00.

A recovery may ensue from NEO’s immediate support at $12.50 but if declines beat down the token, the area between $10.00 and $11.00 will come in handy. On the upside, NEO price would need to break and hold above $15.00 or the upper trendline resistance to validate the upswing to $20.00 and $30.00, respectively.

NEO Alternatives To Buy Today

Before you buy NEO, you may want to consider some of the best altcoins to buy for 2023. We have a dedicated team that reviews the best crypto presales to buy, especially for investors looking at diversifying their crypto portfolios.

Fight Out (FGHT), for instance, is a leading move-to-earn project currently conducting a presale ahead of its initial exchange listing expected in April. Investors scooping up this Web3 fitness platform have so far raised $4.8 million.

FGHT is the token powering Fight Out’s ecosystem built around supporting the global population to live healthy lifestyles without breaking the bank by buying expensive NFTs. Fight Out is using Web3 solutions to transition the vast Web2 audience to Web3 products like the metaverse.

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Similarly, investors may want to diversify their crypto portfolios with Metropoly (METRO), the first NFT marketplace supporting the global real estate industry. The team at Metropoly is tapping the power of Web3 to channel investment in real estate while eliminating third parties like banks.

With a minimum of $100, one can buy an NFT and receive a monthly rental income. So far, METRO’s presale has raised $564k – 56% of the minimum set target.

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