NEO Price Prediction: NEO May Have Bottomed Out and Be Primed for a Bullish Reversal

NEO's price has declined over 30% since last week, falling to its lowest point since March 2020. A reversal could be anticipated as it fell to the extreme oversold zone.

The price of (CRYPTO:NEO) has declined by over 30% since last week, reaching its lowest point since March 2020.

As it fell to the extreme oversold zone, an anticipation for a reversal could be expected.

With the daily and 4-hour charts providing distinct structural signals, a deeper dive into the multi-timeframe setup clarifies potential market direction in the days ahead.

NEO Price Analysis

The daily chart of NEO shows that the price fell to its demand zone of around $5.50, which was last seen in March 2020.

However, according to our Elliott Wave count, this is part of the larger corrective structure that may be ending.

The structure follows classical Elliott Wave guidelines, extending downward with momentum exhaustion signs appearing.

Price action reached 0.5 Fibonacci extension measure from its May 2021 high of $120.

Also, the Relative Strength Index (RSI) reached extreme oversold conditions, falling below 22%, which usually hints at the price bottom.

We’ve seen the formation of the ascending channel since December 2022, but now the NEO is lower than its starting point, confirming its corrective nature.

After reaching a high of $25.80, we saw a continuous downside move, considered the Y wave of the highest degree.

This is the counterpart to the decline from the May 2021 high to the December 2022 low.

NEO Price Prediction

On the 4-hour chart, NEO, we can see that since its $25.80 high, a descending channel formed, leading to today’s low of $5.50, and is still trending downwards.

Price action inside the descending channel was in a five-wave manner, out of which we see the ending wave.

This sequence suggests the possible start of a new impulsive wave, with the next structure anticipated as the beginning of Wave (i) and a shallow retracement for Wave (ii).

However, currently, there are no bullish signs, and we first need to wait and see where the price bottoms out.

If Wave (e) has completed near $5 (0.5 extensions), the path is open for a bullish Wave (i) to extend toward $6.50, aligning with the horizontal resistance.

A sideways move forming a higher low would indicate that the price found its bottom and will likely be a V-shaped one, considering the extreme oversold conditions its currently faces.

A breakout above $6.50 would confirm impulsive strength and lower the probability of further downside.

However, the bullish structure would only be invalidated on a clean break below $5. The RSI on this timeframe is even more over sold, leaving room for an upward surge should momentum return.

If the bullish impulsive count unfolds, higher targets around $11.00 could be expected, especially if a breakout above the channel on the higher timeframe occurs with strong volume confirmation.

Key Levels to Watch