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What to Expect From NEO Price After 45% Increase Last Week?

2 mins
Updated by Ryan James
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In Brief

  • The NEO price has increased since the beginning of the year but only accelerated its rate of increase last week.
  • While the weekly and daily RSI are still bullish, the wave count suggests that a local top could be reached soon.
  • The reaction to the closest resistance at $17 will be crucial in determining the future trend's direction for NEO.
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The NEO price has broken out from a long- and short-term descending resistance trendline. 

The price is currently attempting to break out from the $13.30 horizontal resistance area.

NEO Reaches Long-Term Resistance

The NEO price has increased since the beginning of the year, when it bounced at the $6.10 horizontal support area. The price broke out from a descending resistance trendline in January.

The NEO price did not break out from the $13.30 area initially, rather, it was rejected by it. Then, NEO created a higher low in October (white).

After beginning another upward movement two weeks ago, the altcoin is making another attempt at breaking out above the $13.30 resistance.

NEO Price Movement
NEO/USDT Weekly Chart. Source: TradingView

The weekly Relative Strength Index (RSI) is bullish. With the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.

Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true. The indicator is above 50 and increasing, both signs of a bullish trend.

NEO Price Prediction: How Long Will Increase Continue?

The daily timeframe technical analysis provides a mixed outlook. The reasons for this come from both the Elliott Wave count and the RSI. 

Technical analysts employ the Elliott Wave theory as a means to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.

There are two possibilities for the future count. If the increase is an A-B-C correction (white), the price will reach a local top near $17 before falling. 

If the increase is a new bullish impulse (white), the price will reach the $23.40 resistance area before retracing slightly and resuming its ascent.

While the daily RSI is increasing, it is also in overbought territory. This is a sign often associated with local tops. So, both counts still remain possible. 

NEO Price Prediction
NEO/USDT Daily Chart. Source: TradingView

To conclude, the reaction to the $17 resistance area will be crucial in determining the future NEO trend.

A breakout above it can lead to a 75% increase to the next resistance at $23.40, while a rejection can cause a 37.50% drop to the descending resistance trendline.

For BeInCrypto’s latest crypto market analysis, click here

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Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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