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NEO Price Suddenly Skyrockets With 40% Price Increase -RSI Signals Start of Upward Trend

Published April 9, 2024 8:45 AM
Valdrin Tahiri
Published April 9, 2024 8:45 AM

Key Takeaways

  • The NEO price increased over 40% on April 8, the highest daily increase this year.
  • NEO’s weekly Relative Strength Index gave a bullish signal that led to a rally in 2020.
  • Will NEO’s price movement mirror its previous run or forge a new path instead?

NEO is part of the “old” cryptocurrencies that came out in 2016, reaching its all-time high in 2018. In the previous bullish cycle, NEO did not reach a new all-time high, rather creating a lower high in 2021.

The NEO price traded devoid of volatility for most of 2023 but began a gradual upward movement in 2024. On April 8, the NEO price increased by 40%, drawing the attention of traders who speculate this might be the start of new bullish cycle for NEO.

Why the NEO Increase Is Important

The main resistance area for NEO has been at $14, existing since May 2022. NEO made several unsuccessful breakout attempts (red icons) until finally breaking out in February 2024.

After validating the area as support (green icon) in March, NEO accelerated its upward movement, reaching a high of $22.47 on April 8.

The weekly Relative Strength Index (RSI) movement mirrors that of 2020 which marked the beginning of the upward trend. More specifically, the RSI just moved above 70 (yellow line).

NEO Price Weekly Breakout
NEO/USDT Weekly Chart | Credit: TradingView

Interestingly, the NEO price was also at $20 when the RSI did the same move in the past, having just broken out from the $14 horizontal resistance area.

At the time, the price consolidated for over 120 days, returning to the $14 area again, but eventually began another upward movement of nearly 700%, leading to a $141 high in May 2021.

NEO Price Prediction: Moving Toward $30

The daily time frame wave count gives a bullish prediction, aligning with the weekly one. The count indicates NEO  is in wave three of a five-wave upward movement (white). The sub-wave count is in black, showing an extended third wave.

There is also a fractal showing two completed A-B-C structures that led to breakouts from descending resistance trend lines, and significant upward movements afterward. The second breakout occurred on April 8, leading to a 40% NEO price increase.

NEO Price Wave Count Shows Increase in
NEO/USDT Daily Chart | Credit: TradingView

Since wave three has extended, it is possible it will reach 1.61 times the length of wave one at a high of $28.

Conversely, falling below the sub-wave one high (red) at $17 will mean the count is incorrect. This could lead to a retest of the $14 horizontal area.

Will History Repeat for NEO?

NEO’s breakout, a significant daily increase and a bullish weekly RSI signal echo past movement, leading to the possibility the price will undergo a similar run to 2020/2021.

While the upward trend will likely not follow the exact same path, shorter time frames align with this positive prediction. This indicates the most significant portion of NEO’s increase is yet to come.

 

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