NEO Price Creates Three Higher Lows – Breakout Can Trigger 35% Rally

Key Takeaways

• The NEO price is following an ascending support trend line.
• NEO trades inside a short-term ascending triangle pattern.
• Can NEO break out from this bullish short-term triangle?

The NEO price has lagged considerably in the current market cycle but started upward on Aug. 5 and is attempting to break out from a minor resistance area. Some positive NEO news could spur the rally.

On Oct. 16, NEO held an AMA regarding the launch of Neo X, the new sidechain that acts as a bridge between Neo N3 and the EVM network.

So far, it has been audited by three firms, most recently by Red4Sec  at the beginning of October. The Neo X mainnet launched in July, along with a $20 million funding program.

Let’s examine the NEO price movement and see if it can capitalize on the positive momentum that has been building in the past three months.

NEO Bounces Above Support

The weekly time frame NEO Chart shows an increase alongside an ascending support trend line since the start of 2023.

During this time, NEO bounced at the trendline four times, most recently in August. The bounce started the upward movement that is still ongoing.

During this time, NEO has traded under the $14 horizontal area, which has provided resistance since April 2022.

NEO briefly moved above this area in April 2024 (black circle) but fell below it shortly afterward, implying that the breakout was just a deviation.

The area is now likely to act as resistance if NEO reaches it.

Technical indicators are showing interesting bullish signs. This is especially clear in the Moving Average Convergence/Divergence (MACD), which has made a bullish cross (black icon).

On the other hand, the Relative Strength Index (RSI) has nearly moved above 50 but has not yet crossed (yellow icon). If it does, it will suggest that the long-term trend has turned bullish.

So, while technical indicators are close to turning bullish, the price action suggests that a considerable price increase is needed for the long-term trend to turn bullish.

NEO Price Breakout Likely

The shorter-term daily time frame suggests that a NEO price breakout is likely. This is because of the price action and indicator readings.

The price action shows that NEO has created several higher lows alongside an ascending support trend line since Aug. 5. Combined with the minor resistance at $10.90, the trend line creates an ascending triangle, considered a bullish pattern.

Moreover, the daily RSI and MACD are increasing and above 50 and 0, respectively. So, a breakout from the triangle is the most likely future outlook.

A breakout that travels the entire triangle’s height will take the NEO price just above $14. This would reach the long-term resistance from the weekly time frame and the 0.382 Fibonacci retracement resistance of the entire downward movement.

So, while a short-term breakout is likely, the long-term trend depends on the reaction once NEO reaches the $14 level.

Long-Term Trend Unclear

The NEO price has increased gradually since Aug. 5, creating several higher lows.

NEO also trades in a short-term ascending triangle, considered a bullish pattern. A breakout from it can take the price toward the long-term resistance at $14.

However, the long-term trend is undetermined until the price clears the $14 horizontal resistance area.