NEO ($NEO) price is demonstrating a strong bullish market structure, as highlighted by analyst VipRoseTr. A rounding bottom pattern on the 4-day timeframe, coupled with a V-shaped recovery, suggests that NEO is poised for further upward movement.
With its current price near $16.99, the cryptocurrency is holding above key support levels. It is setting the stage for potential rallies toward its higher targets at $29.07 and $35.83.
Rounding Bottom Formation Signals Long-Term Reversal
The rounding bottom pattern that emerged on the 4-day chart indicates the transition from a bear market to a bull market. This pattern is frequently followed by an upward reversal and beginning of an extended bullish trend.
After breaking through this pattern, NEO has returned to the V-shaped pattern. This means that buyers control the market and are quite optimistic about the future of NEO.
The price has recently bounced off the 0.382 Fibonacci retracement level which is currently around the current price and leading to other price levels.
Resistance Levels and NEO Price Discovery Targets
The $22.02 level has been defined as the next critical level to consider. A breach beyond this level will validate the bullish trend and more upside may be seen. Crypto analyst VipRoseTr has highlighted two major price targets: The initial target zone for NEO is at $29.07, and $35.83 is a crucial level for the NEO price.
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These targets are quite relevant and important as $29.07 corresponds to previous resistances and some Fibonacci levels.
A push past $35.83 would represent a significant bull breakout, and NEO could be poised for even further gains in the coming days. Nonetheless, the $22.02 barrier has to be broken for the upside potential to remain intact.
Rising Wedge on the 4-Hour Chart Sparks Caution
However, looking at the 4-hour chart there is a possible bearish pattern in the form of the rising wedge.
This pattern is defined by two trend lines that are converging with higher highs and higher lows, and it usually implies that the bullish trend is losing momentum. At present, with NEO at $16.86, the pattern signifies that a break could be made with near-term bearish sentiment.
RSI of the 4-hour chart is now at 71.83 showing that the price is overbought. This implies that NEO may have a correction or a consolidation before it continues with its upward movement. Also, the volume trend inside the wedge indicates a bearish breakdown, which can be seen with the next target at the $15.50-$15.00 level.
Key Levels to Watch for NEO Price’s Next Move
In the bullish case, NEO price fully breaks through the $22.02 resistance level and then heads towards $29.07 and $35.83. Higher volume and continuous price action support that will arise from this trend will establish the bullish structure. Traders should therefore wait for a breakout to occur in order to confirm the upward movement.
A fall below the $16.50 level may break down the rising wedge structure. This would most probably lead to a downside towards $14.00 which is the measured move target for the wedge. Such a pullback would only slow down the upward process of NEO but would not reject the whole bullish structure in the long-term.
