NEO Price Prediction: NEO bulls defended $6.00 and formed a strong bullish reversal candle

NEO crypto price breakout previous week high at $6.44 and forming higher high candle
NEO price may gain further upside momentum if bulls succeed to trade above 50 day EMA

NEO crypto price is trading with mild bullish cues while forming higher high candles and likely to approach 50 day EMA in coming few sessions. Currently, NEO/USDT is trading at $6.57 with the intraday gains of 0.61% and 24 hour volume to market cap ratio stood at 0.0447

NEO price preparing for relief rally ?

On a daily time frame, NEO prices are in a downtrend and bears are continuously dominating on higher levels. From the past couple of weeks, prices are trading sideways in the range between $5.98 to $7.49 and likely to break out on either side soon. Recently, Neo hit a low at $5.94 and formed a hammer candle denoting prices may witness a short term relief rally in coming weeks.

The 200 day ema (green) sloping down indicates a trend to remain weak on a positional basis and the 50 day ema (yellow) at $6.81 will act as an immediate hurdle for bulls followed by next at $7.49 and $9.09. On a lower side $5.98 will be a savior for bulls and if prices slipped below $5.98 bears may drag the prices further down towards $5.000 levels. The MACD had generated positive crossover indicating bullishness may continue in coming days and the RSI reversing upside from the oversold territory denotes the confidence of bulls.

Will the bulls break out of the trendline ?

On a lower time frame, NEO prices formed a double bottom pattern and prices broke out the neckline with the strong bullish candle along with a higher volume indicating some genuine buyers had taken long positions and prices may continue its upside momentum in coming days. As of now, prices are on slow and steady rise but bulls might face a hurdle at a downward sloping trendline in coming few sessions. The super trend indicator had generated a buy signal indicating the short term trend is reversing in the favor of bulls, However, if prices slipped below $6.000 the sentiment will turn negative which will favor the bears.

Summary

NEO crypto price is showing initial signs of short term trend reversal and bulls were trying to continue the upside momentum while forming higher high candles.

As per technical analysis, prices are preparing for a short term relief rally in coming days. So, aggressive traders might look for long opportunities only if prices are able to sustain above the 50 day EMA, for the target of $9.00 and above levels by keeping $6.00 as SL. However, if prices slipped below $6.00 prices bears may drag the prices further down towards $5.00 and below levels.

Technical levels

Resistance levels : $7.49 and $9.09

Support levels : $5.98 and $5.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.