NEO Technical Analysis: Attempts at an Ascending Trendline Breakout at $13

By    9 Jun,2022

With the support of an ascending trendline, NEO price action reveals a bullish relief rally poised to break through the $13 barrier.


NEO’s Previous Performance

Following the severe selling seen in early May, NEO prices fell below the psychological level of $10, finding support below $8. Following that, buyers regained control of the critical support and began a relief rally, resulting in the formation of a support trendline. Furthermore, the trendline forms an ascending triangle pattern that opposes bullish expansion with overhead resistance at $13.28.

NEO Technical Evaluation

Despite increased purchasing pressure, the now formed NEO daily candle faces higher price rejection from the $13.28 overhead barrier.

As a result, traders should expect more consolidation within the triangle as sellers above $13 stall the breakout surge.

With a little reversal in the ADX line, the DMI indicator shows the DI lines diverging to regain the bullish alignment.

The reversal and bullish alignment indicate renewed bullish momentum. Following the previous bullish crossover, the MACD and signal lines continue to rise as they approach the zero line. The expanding bullish histograms signal that the underlying attitudes are improving. Furthermore, the RSI indicator shows a strong rally approaching the halfway point after crossing above the 14-day SMA line (yellow). In a summary, the signs show that demand for NEO coins is increasing, which might boost the market value above $13.

Future Trend

Assume that the extended purchasing above $13 persists, and the breakout rally drives NEO prices to $16.5, or a 25% price increase. $13.28 and $16.50 are resistance levels. Levels of Support: $10.50 and $8.500