In a recent wave of bullish momentum, NEO has surpassed the pivotal $10 mark, catching the attention of crypto enthusiasts and investors, and hinting at a possible bullish phase unfolding.
As we witness NEO‘s price inching close to $11, the narrative of a bullish revival is being rewritten. Yet, a definitive confirmation awaits a breakthrough and sustenance above the challenging $16 resistance level.
The NEO cryptocurrency has experienced a tumultuous journey since its peak in May 2021, when it nearly hit $140. Following that high, NEO entered a prolonged bear market, plummeting to approximately $6 on December 30, 2021. This level previously acted as a springboard for its bullish run and provided support.
A strong rebound took NEO‘s value to $15.50 by February 21, 2023, but it encountered solid resistance, leading to a dip revisiting $6.50 support on October 20.
The recent surge to nearly $11 on November 2 signals the potential start of a new bullish phase for NEO . However, confirmation depends on NEO achieving a new higher high above the $16 resistance level.
While a breakout from the descending resistance has occurred, it’s important to note that a retest to confirm it as support hasn’t happened yet. The Relative Strength Index (RSI) on the daily chart hovers around 80%, often a precursor to a retracement.
Given NEO‘s rapid price rise, a corrective pullback may soon establish a local higher low, possibly testing the recently breached resistance for support. Upholding this level could pave the way for an ascent above the $16 threshold, solidifying the start of a new bullish cycle.
The analysis of NEO’s price movement on the hourly chart suggests that the cryptocurrency is in an uptrend, characterized by a five-wave structure indicative of a bullish impulse. This pattern suggests that NEO’s price has been rising with a strong momentum since the October 20 low.
The current phase in the price movement is identified as the final wave in this sequence, with three smaller degree sub-waves already completed. This suggests the potential for another upward push, with a target zone around the $11 resistance level.
NEO has already tested the lower boundary of this resistance zone, leading to a minor pullback. An important level to monitor is $9.72, representing the end of the first wave in the current sequence. A drop below this level would invalidate the projection of a new higher high.
As the uptrend approaches its conclusion, focus may shift to the expected corrective phase. This could establish the first higher low for NEO. This natural part of the price cycle, characterized by alternating phases of impulse and correction, will play a critical role in confirming the strength of the ongoing bullish trend and shaping future price dynamics.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.