The bulls are looking to keep the upper hand after rebounding from the low of $49.50.
NEO’s price is down 1.5% in the last 24 hours at the time of writing and 6.6% in the last week, but buyers are fighting to keep prices above $ 50 and aim for new highs.
NEO’s price outlook on the daily chart
NEO’s price broke through several resistance levels as it traded in an upward parallel channel on the daily chart. The uptrend helped break through the $ 37.68 barrier, and the bulls took advantage of the increased buying pressure to test early June prices around $ 62.97.
The break below the support line of the ascending channel, however, allowed NEO / USD to retest support near $49.50. The pair also formed a descending triangle, with the potential for further losses if the price falls below the horizontal support line of the triangle near $51.
The lack of volume and the downward position of the RSI also suggests that NEO’s prices may be vulnerable to further decline. A bearish scenario could see NEO / USD trading towards initial support around $ 48.58 (horizontal support).
Daily chart of NEO / USD. Source : TradingView
The current daily candle also shows that the bulls are trying to buy the latest decline, but they might need a little more volume to overcome the bearish challenge. Looking at the chart, an invalidation of the negative setup could see buyers aiming for the 20-day simple moving average (SMA) at $54.84. Success at this level would pave the way for further gains towards the $59 resistance line.
NEO’s price outlook on the 4-hour chart
The NEO / USD pair on the 4-hour chart is trading below the SMA 20 and the SMA 50, suggesting that the bearish picture seen in recent days remains. The price could therefore move downward due to the appearance of the symmetrical triangle.
NEO / USD chart over 4 hours. Source : TradingView
The 4-hour time frame suggests that there is a strong support near $ 51 and the long body of the candle indicates increasing pressure on the side of buyers. If we look at the RSI, its upward slope could allow a new high above 50 and give the upper hand to the bulls.
In this case, buyers could aim for prices above the simple moving averages of 20 and 50, with the initial target around $ 55.50 to $60.
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