NEO price analysis: major breakout looms above $13.00 resistance level
19:44, 19 June 2020
NEO has been consolidating in a tight price range, following a strong technical rejection from major trendline resistance.
NEO technical analysis shows if bulls break above the $13.00 level then a major new bullish trend could form.
NEO medium-term price trend
NEO has been trading in a tight price range, around the $10.00 level, after the cryptocurrency suffered a major rejection from the $13.00 level.
NEO price analysis shows that a rally towards the $20.00 level could take place if the $13.00 level is overcome.
The daily time frame shows that major long-term trendline resistance from a large falling wedge is now found around the $13.00 level.
Typically, falling wedges are considered to be bullish reversal patterns. Traders should be mindful that a powerful medium-term technical breakout may take place if price moves above the wedge.
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NEO short-term price trend
NEO technical analysis over the short term shows that the cryptocurrency only has a bearish bias while the price trades above the $11.00 level.
The four-hour time frame continues to show that a bearish head-and-shoulders pattern has formed, following the recent rejection from the $13.00 area.
According to the size of the bearish reversal pattern the NEO/USD pair could fall towards the $7.00 support level.
Traders should be cautious if the neckline of the bearish pattern is broken, around the $9.50 level, as it could provoke a strong down move.
It is noteworthy that if the pattern is invalidated, the NEO/USD pair could rally towards the $16.50 level.
NEO technical summary
NEO technical analysis shows that the NEO/USD pair needs to advance above the $13.00 level to trigger a major rally. Key support is located around the $9.50 area.