Pumps go with dumps like horse and carriage. Sometimes we will see a rally that does not come back, like Bitcoin against fiat i.e. BTC/USD. But for most ALT/BTC pairs we usually see sharp sell-offs OR a long period of consolidation after a pump.
NEO/BTC just had 2 strong sessions because of rumor that it will be the cryptocurrency of China. Some believe China will ban bitcoin mining but allow NEO mining. Who knows! It's China.
But the chart does show a potential for some upside. But the risk is too much at the moment to go long:
- The fact that NEOBTC held above the 200-day simple moving average is a good sign of bullish bias.
- Still, it looks like its feeling the resistance around 0.00600.
- Perhaps we should wait for price to come down to 0.00434.
- This might take longer than the time it took to rally, so it could be a week before we get a good entry point based on reward to risk.