NEO Price Analysis: 60% Rally in Six Days – What’s Next?

Analysis1mos agoUpdate 6086cf...
37 0

In Brief

  • NEO price marked a 60% rally in the last six days, which will likely trigger a further rise.
  • This increase in price brought the Sharpe Ratio to 2.17, making NEO an attractive investment.
  • Short contracts witnessing liquidations worth $4 million will further drive the bears away, making room for an increase.

NEO’s price is noting a multi-month high after registering the highest gains in the market in the past week.

Will this rise continue, or will the altcoin bear witness to corrections in the coming days?

NEO Bears Extend Losses

NEO’s price rise has resulted in the overall market value of the altcoin rising considerably, which will consequently lead to higher profits. This is substantiated by the Sharpe Ratio, which is currently at 2.17.

The Sharpe ratio measures the risk-adjusted return of an investment. It indicates how much excess return an investment generates per unit of volatility. Higher values are an indication of higher returns.

NEO Price Analysis: 60% Rally in Six Days – What’s Next?
NEO Sharpe Ratio. Source: Messari

This is a key metric in determining whether or not an asset will drive investors towards it, and in the case of NEO, it is likely.

Read More: Neo (NEO) Price Prediction 2024/2035/2030

Furthermore, the recent developments will also keep the bears away. This is because their attempts at profiting off price corrections have not been rewarding. Liquidations have been dominated by short contracts for the past four days.

In this duration, nearly $4 million worth of liquidations were recorded, potentially discouraging bears from placing any more bearish bets.

NEO Price Analysis: 60% Rally in Six Days – What’s Next?
NEO Shorts Liquidations. Source: Coinglass

Consequently, NEO’s price noted a bullish recovery.

NEO Price Prediction: Another Price Rise in Sight?

NEO’s price is trading just under $23.00 at the time of writing, potentially cementing the $22.63 level as support. This would allow the altcoin to continue with its rally and breach through the $24.22 resistance to reach $25.00.

The Average Directional Index (ADX) above the 25.0 thresholds suggests that the active uptrend is gaining strength. This means that NEO could likely keep rising over the coming days.

NEO Price Analysis: 60% Rally in Six Days – What’s Next?
NEO/USDT 1-day chart. Source: TradingView

Read More: What to Expect From NEO Price After 45% Increase Last Week?

But if the $22.63 support is invalidated at any point, the bullish outlook will be invalidated, too, as NEO’s price will fall to tag the support at $20.00.

Top crypto platforms in the US | April 2024

This article is sourced from the internet: NEO Price Analysis: 60% Rally in Six Days – What’s Next?

Related: Cardano (ADA) Price May Drop 26% According to This Technical Pattern

In Brief Cardano Price is forming a double-top bearish reversal pattern that is targeting a 26% decline. Whales, which command 94% of the entire daily transaction volume, are pulling back. MVRV shows that ADA is in an optimum condition to accumulate; this sentiment could act as a buffer to the corrections. The Cardano (ADA) price is noting the formation of a bearish reversal pattern, according to which a larger-than-expected correction is due for the altcoin. At the same time, ADA is ripe for the picking, and this sentiment alone could buffer the potential decline. Whales Are Pulling Back Whales are one of the most important and influential cohorts for any cryptocurrency since their movements impact price action the most. Such is the case with Cardano, too. Despite whales holding less…

 

© Copyright Notice

Related articles

No comments

You must be logged in to leave a comment!
Login immediately
No comments...