Short-Term Bullish Pattern and Imminent Breakout for NEO Price
The NEO price is currently trading within a short-term bullish pattern just above a long-term horizontal support area. While the long-term outlook is still uncertain, short-term indicators suggest that a breakout is on the horizon.
NEO Falls Despite Long-Term Breakout
An analysis of the weekly timeframe reveals that the NEO price recently broke out from a 609-day descending resistance line in January. Breakouts from such long-term levels often lead to significant price increases in the future.
After the breakout, NEO reached a new yearly high in February but failed to sustain the momentum. The price fell below the expected support area, confirming it as resistance. As a result, the price dropped to a low of $6.38 in August.
Furthermore, the weekly Relative Strength Index (RSI) supports the bearish trend. With RSI as a momentum indicator, you can determine whether a market is overbought or oversold. Currently, the RSI is below 50 and decreasing, indicating a bearish trend.
NEO Price Prediction: Potential Breakout Ahead
On the daily timeframe, the technical analysis presents a more bullish outlook for NEO. The price has been trading within a descending parallel channel since the yearly high in February, suggesting a corrective movement. However, the price is currently in the upper portion of the channel, indicating the possibility of a breakout.
In addition, the RSI reached its lowest value since March 2020, signaling a potential price bottom. Although the RSI has increased, it has not yet surpassed the 50 mark.
The most likely future scenario is an increase to the next resistance level at $9.60, representing a 30% upward movement from the current price. However, failure to break out from the channel may lead to a retest of the long-term support at $6.30, resulting in a 15% drop.
Hot Take: NEO’s Price Outlook Hangs in the Balance
The NEO price is currently at a critical juncture, with the potential for both bullish and bearish outcomes. Traders should closely monitor the price action and the RSI indicator to gauge the market’s direction. A breakout from the descending parallel channel could propel NEO towards higher resistance levels, while a failure to break out may result in a retest of the long-term support. Stay vigilant and adapt your trading strategy accordingly.
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