Neucoin Price Key Highlights
- Neucoin price made a convincing downside break from its consolidation visible on both short-term and long-term time frames.
- This suggests that further neucoin losses are in the cards, spurred by positive momentum in bitcoin price action.
Neucoin price might have its sights set on much further lows, although a pullback to the broken support area might still be possible.
Support Turned Resistance?
With neucoin price treading lows not seen before, traders might be quick to book profits on their short positions. If that happens, price could make a rebound to the broken support area at 0.000021, which might hold as resistance moving forward.
The short-term 5 SMA is below the longer-term 20 SMA, indicating that the selloff is likely to persist. However, the 5 SMA is starting to move close to the 20 SMA, possibly to attempt an upward crossover.
In addition, stochastic has been indicating heavily oversold conditions. This suggests that sellers are already feeling exhausted and might need to take a break, allowing buyers to take over neucoin price action while they refuel.
A descending trend line can be drawn to connect the recent highs of price action since the start of the month, supporting the idea of a downtrend for neucoin price. However, a break past that trend line, which is also around the 0.000021 level, could be a signal that buyers are gaining more traction.
In that case, neucoin price could see more upside until the previous range resistance at 0.000023. Further gains past that point could signal that the downside break was a fake out and that bullish momentum could resume and take price up to the longer-term range resistance at 0.000026.
Still, the current price action could also signify a continuation pattern, as the tight consolidation resembles a bearish flag. A downside break below this short-term formation could show that sellers are ready to jump back to action.
Intraday support level – 0.000020
Intraday resistance level – 0.000021
Technical Indicators Settings:
- 5 SMA and 20 SMA
- Stochastic (14, 3, 3)
Charts from Cryptocompare.com