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NEO Price Shows Recovery Signs After 86 Days of Correcting – Can Price Finally Break $15?

2 mins
Updated by Ryan James
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In Brief

  • NEO was rejected by the top of its horizontal range on January 1. It has been on a downward trend since.
  • While the daily time frame is undetermined, the six-hour price action and RSI shows several bullish signs.
  • Despite the bullish NEO price prediction, falling below the short-term breakout level can cause a decrease.
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The NEO price has traded inside a corrective descending parallel channel for the past 86 days.

After breaking out from a short-term resistance, NEO unsuccessfully attempted to reclaim the channel’s midline.

NEO Returns to Support

The technical analysis of the daily time frame shows that NEO has traded below a long-term horizontal resistance area since February 2023.

The area caused several rejections, the most recent on January 1, 2024. The decrease culminated with a low of $9.80 on January 23. The NEO price bounced afterward and has increased since (green icon).

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

The daily Relative Strength Index (RSI) gives a mixed reading. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite. While the indicator is increasing, it is still below 50. Also, the bearish divergence trend line that started the decrease is still intact.

NEO Price Prediction: Explaining Today’s Price Increase

The six-hour time frame shows that NEO has traded inside a descending parallel channel for the past 86 days. These channels usually contain corrective movements.

The NEO price bounced at the channel’s support trend line on January 23 (green icon). While it broke out from a short-term resistance trend line, it was rejected by the channel’s midline (red circle). The six-hour RSI legitimizes the short-term breakout since it increased above 50.

Before the breakout, GeniiAlert noted a significant surge in volume in the one-hour candlestick. Crypto Chart Monkey also believes the price will continue increasing. He tweeted:

Paradisers: Get ready for a potential bullish trade opportunity with #NEOUSDT. After facing resistance, NEO is now finding support at $10.08. We could see a turnaround here as it heads towards previous highs.

Furthermore, the wave count shows a completed W-X-Y correction. 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.

If the NEO price breaks out from the channel’s midline, it can increase by 30% to its resistance trend line at $14.80.

NEO Price Prediction
NEO/USDT Six-Hour Chart. Source: TradingView

Despite this bullish NEO price prediction, a decrease below the short-term resistance can trigger a 13% drop to the channel’s support at $9.80.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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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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