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NEO Price Analysis NEO / USD: Sailing Ahead

A strong upside breakout is in the charts for NEO.

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  • NEO is poised for a technical breakout from a falling wedge pattern
  • Medium-term technical analysis still shows a bullish inverted head and shoulders pattern
  • The daily time frame shows the $11.00 level as a potential upside target

NEO is poised for a technical breakout in the near-term, as the popular cryptocurrency consolidates inside its tightest three-week trading range since March this year. The NEO / USD pair is currently trading at its weakest since May 2019 and is down over sixty percent from its yearly price peak, just above the $24.00 level.

Despite reversing sharply from above the $20.00 level in late June, the cryptocurrency still trades around twenty percent higher since the start of 2019. Short-term technical analysis suggests that the NEO / USD pair could soon launch a bullish rally towards the $11.00 level, capturing a further twenty percent gain.

The four-hour time frame shows that a falling wedge pattern has formed, which is defined as a bullish reversal pattern. The size of the pattern suggests that the $11.00 level is the overall upside target if bulls can perform a breakout above trendline resistance, around the $9.90 level.

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The overall upside target also coincides with the NEO / USD pair’s 200-day moving average, which is situated around the $11.00 level. In order to accomplish the upside objective, bulls need to continue to defend the $7.50 to $8.00 support area. Failure under this key area will be extremely bearish from a technical perspective.

The daily time frame continues to highlight a large inverted head and shoulders pattern with the neckline of the bullish pattern located some 60 percent away from current pricing, around the $14.00 level.

The daily time frame also highlights the $15.00 level as a potential upside target, if bulls can eventually break above the NEO / USD pair’s 200-day moving average.

According to the latest sentiment data from TheTIE.io, the short-term sentiment towards NEO is bullish, at 70.00 %, while the overall long-term sentiment towards the cryptocurrency is negative, at 38.00%.

 

NEO H4 Chart September 10 by TradingView
NEO / USD H4 Chart by TradingView


Upside Potential

The four-hour time frame is showing that the NEO / USD pair can quickly advance towards the $11.00 level if bulls can breakthrough strong technical resistance around the $9.50 level.

The daily time frame highlights that once above the $11.00 resistance level, further bullish advancement towards the $15.00 level then remains possible.

 

NEO Daily Chart September 10 by TradingView
NEO / USD Daily Chart by TradingView


Downside Potential

The four-hour time frame shows that if sellers force a bearish breakout below the $7.50 level then the NEO / USD pair could come under severe selling pressure towards the $6.00 level.

The daily time frame currently highlights the $7.50 and $5.50 levels as the main technical support areas. A move under the $5.50 level would invalidate the large inverted head and shoulders pattern on the daily time frame.


Summary

NEO may be getting ready for a strong breakout move, as the cryptocurrency consolidates inside an extremely narrow range band.

Short-term technical analysis suggests that the NEO / USD pair could soar towards the $11.00 level if bulls can breakout from the well-defined falling wedge pattern.

 

For a quick look into NEO, check out our coin guide.

NEO Chart

 

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

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