Bulls are seeking to maintain the upper hand after rebounding off lows of $49.50
The price of NEO is down 1.5% over the last 24 hours at time of writing and 6.6% over the past week, but buyers are battling to keep prices above $50 and target fresh highs.
NEO price outlook on the daily chart
NEO price breached multiple resistance levels as it traded within an ascending parallel channel on the daily chart. The uptrend included a run past the $37.68 barrier, with the bulls riding increased buying pressure to test early June prices around $62.97.
The breakdown below the support line of the ascending channel has, however, seen NEO/USD retest support near $49.50. The pair has also formed a descending triangle pattern, with a potential for further losses if the price falls below the triangle’s horizontal support line near $51.
The lack of volume and the sloping RSI also suggest that NEO prices might be vulnerable to a fresh decline. A bearish scenario could see NEO/USD trade towards initial support around $48.58 (horizontal support).
NEO/USD daily chart. Source: TradingView
The current daily candle also shows bulls are trying to buy the latest dip but may need a little more volume to surmount the bearish challenge. Looking at the chart, an invalidation of the negative setup could see buyers target the 20-day simple moving average (SMA) at $54.84. Success at this level will open up further gains towards the $59 resistance line.
NEO price outlook on the 4-hour chart
The NEO/USD pair on the 4-hour chart is trading below both the 20 SMA and 50 SMA to suggest the bearish picture seen over the past several days remains. The price might thus move lower due to the appearance of the symmetrical triangle.
NEO/USD 4-hour chart.Source: TradingView
The 4-hour time frame suggests there’s a strong support near $51 and the long body of the candle indicates growing buy-side pressure. Looking at the RSI, its upward slope could make a new high above 50 and give bulls the upper hand.
In that case, buyers might target prices above the 20 and 50 simple moving averages, with the initial objective at around $55.50 to $60.
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