The poor performance of NEOs in August has probably strengthened the already strong grip on the market.
Down 39.6% month over month in August, it is the biggest loser in the top 25 cryptocurrencies by market capitalization, according to CoinMarketCap and CoinDesk analysis.
During the month, the fourteenth largest cryptocurrency in the world moved in tandem with the broader market, which suffered a beat in August due to the refusal by SEC of more funds traded on the stock exchange (ETF).
In particular, the total market capitalization of all cryptocurrencies was printing more than $ 100 billion in losses only two weeks after the month, as the metric had dropped below $ 200 billion for the first time in by eight months . At the same time, the NEO reported monthly lows below $ 14.50.
However, the broader market rebounded strongly in the last two weeks of August, recovering nearly $ 40 billion in the value lost in total market capitalization.
However, the demonstration towards the end of August was not sufficient for many cryptocurrencies to save the considerable losses incurred in the previous weeks, including bitcoins (BTC) and ether (ETH), the largest market assets, reporting monthly double-digit losses.
NEO has also recovered 35% from the lows seen on August 14 but is still a leading artist in the losers' column.
Monthly Performance: -39.62 percent
Historical Highlights: $ 162.11
Closing Price August 31st: $ 31.73
Current market price: $ 19.16
Rank as per market capitalization: 15
NEO stumbled in August thanks to a less impressive result in July when the price has decreased by more than 40% from month to month. The resulting short-term oversold conditions, however, did little to put an offer under the cryptocurrency.
Prices continued their decline from an initial price of $ 28.87 on August 1 to the monthly minimum of $ 14.38 set on August 14, at present representing a two-week depreciation of 50.16 %.
The cryptocurrency has made a small comeback in the last two weeks of August, climbing 33% from the monthly minimum to a final price of just over $ 19 on August 31st. Overall, NEO printed a 39.62 percentage loss during the month of August.
The graph above depicts the image of a cryptocurrency stuck in limbo.
A rebound from the key support of $ 14, although encouraging, is not enough for the bulls to make a strong comeback. Only a break above $ 30 (former support-turn-resistance) would indicate that a fund has been made.
However, it could be a difficult task, as 5 and 10 month moving averages (MA) are above current prices, indicating that the path of least resistance is still on the downside. Also, with six of the last seven months flashing in red, it is clear that bears have control.
However, the monthly candle offers some hope for the bulls because of its long lower wick, indicating that there was a considerable purchase after the price touched the $ 14 support .
A monthly close above the current resistance at $ 34.00 would return the long-term trend to bullish favor and establish the possibility of a $ 50 rally – the position of the previous support and the moving average at 5 months. On the other hand, a close below the current $ 14 support would confirm the bearish strength and will probably send prices to the previous support of $ 7.70.
Disclosure: The author retains BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing.
NEO image via Shutterstock