NEO price has broken out of a long and short-term declining resistance trend line. The token price is currently attempting to break out of the $13.30 horizontal resistance area.
Key Price Range in NEO
The price of the popular altcoin has risen since the beginning of the year when it bounced off the $6.10 horizontal support area. The price made a breakout from a declining resistance trend line in January.
Initially, NEO price failed to break out from the $13.30 region and was subsequently rejected. NEO then created a higher low in October.
After starting another upward move two weeks ago, the altcoin made another attempt to break above the $13.30 resistance.
The weekly Relative Strength Index (RSI) is on the rise. When RSI is used as a momentum indicator, investors can determine whether the market is overbought or oversold and decide whether a token should be accumulated or sold.
If the RSI value is above 50 and the trend is upward, the bulls are advantageous, but if the reading is below 50, the opposite may be true. The indicator is above 50 and rising, which could both be signs of an upward trend.
NEO Price Analysis
According to experts, the daily time frame provides a mixed outlook for technical analysis. This is due to both the Elliott Wave count and the RSI.
Technical analysts use the Elliott Wave theory as a tool to identify recurring long-term price patterns and investor psychology, which can help determine the direction of a trend.
There are two possibilities for future price movement. If the increase is an ABC correction, the price may reach a local peak around $17 before falling.
If the increase is a new upward trend, the price may reach the $23.40 resistance area before experiencing a slight pullback and continuing its upward movement.
The daily RSI is rising while being in the overbought zone. This condition could be a sign typically associated with local peaks. It is also noted that both scenarios are still possible.
In conclusion, the reaction at the $17 resistance area could be crucial in determining the future trend of NEO.
