NEO Eyes Major Breakout as December-Long Descending Wedge Nears Completion

Key Takeaways

• NEO completed a W-X-Y-Z corrective pattern.
• A breakout from a falling wedge suggests reversal potential.
• RSI and wave structure favor continued upside.

NEO has completed a complex W-X-Y-X-Z corrective structure, bottoming out near $4.30 before beginning a potential trend reversal.

A falling wedge pattern dominates the macro view, while the microstructure reveals an impulsive rise followed by a clean ABC correction.

This dual perspective suggests growing bullish momentum that could trigger a breakout, particularly if NEO holds above critical support.

NEO Price Analysis

NEO has been in a prolonged bear trend since peaking at $26 in December. This was marked by a five-leg W-X-Y-X-Z correction, culminating in early April 2025 at around $4.30.

The low coincided with the lower boundary of a large descending wedge and a historically significant support zone.

Since then, price action has slowly climbed, breaking above the descending wedge resistance.

In addition, bullish divergence on the Relative Strength Index (RSI) also emerged, indicating seller exhaustion.

Although the move hasn’t yet confirmed a strong breakout, the price has been consolidating above the previous lows, showing signs of accumulation.

The RSI rebounded from oversold to above 60, confirming positive momentum.

The price stabilizes within a wide demand zone ($4.90–$5.70), suggesting it’s building a base for a potential rally.

A move above the $6.51 resistance would confirm a breakout from the macro structure and signal the start of a new bullish cycle.

NEO Price Prediction

On the intraday chart, NEO completed a clean five-wave impulsive move from April 7 to April 10, followed by an ABC corrective retracement that found support near $5.

This structure fits the Elliott Wave model for a potential wave 1 and 2 formation, suggesting that wave 3 might be underway.

The breakout from the local descending trendline reinforces the idea that the corrective phase has ended. Price is currently testing the same zone for support, showing higher lows, which may indicate the beginning of a new impulsive wave.

If the upward trajectory resumes, wave 3 could target the $6.50–$7.20 region, aligning with a prior horizontal resistance and the 0.618 Fibonacci retracement level of the previous decline. A strong move beyond this would add confluence to the macro bullish thesis.

RSI remains neutral on the 1H but is gradually trending higher, supporting continuation potential. However, failure to hold above $5.20 would invalidate the immediate bullish setup and could drag the price back toward the $4.80 area.

Key Levels to Watch

• Major Support: $5.00 (demand zone), $4.30 (Wedge base, corrective low).
• Immediate Resistance: $6.51 (horizontal resistance), $7.20 (Fib target zone).
• Breakout Confirmation: Sustained move above $6.51 with strong volume.
• Invalidation Level: Breakdown below the $5.00 support zone.
• Fractal Watch Zone: $7.20–$8.50 (projected target for wave 3 extension).