EW Analysis: NEOUSD Can See A Deeper Corrective Decline

14 Jul 2020

Hello traders!
Today we will talk about cryptocurrencies, specifically NEO and its price action from Elliott Wave perspective.

NEOUSD made an impulsive five-wave cycle from March lows, which suggests a bullish reversal at least in three waves A/1 - B/2 - C/3. Since the beginning of June, seems like NEO is making a three-wave a-b-c correction, where wave "c" is still missing. So, don't be surprised if we see another decline towards projected 8.0 - 6.0 support zone around important 61,8% - 78,6% Fibonacci retracement and this is where a higher degree wave B/2 correction may come to an end, which can be followed by strong and impulsive bounce back to highs for wave C/3. In case if we see something deeper and more complex, invalidation level remains at 4.0!

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14 Jul 2020

Nota

The main reason why we think so is also BTCUSDLONGS/BTCUSDSHORTS ratio chart, which is nicely coming back to the lower side of a range and it means that NEOUSD is becoming supportive, so bulls are probably here to stay for a while, at least for wave C/3.

14 Jul 2020

Nota

Small mistake. It's a NEOUSDLONGS/NEOUSDSHORTS ratio chart, but you can see it on the chart.