NEO's Return: Technical Signals Hint at Potential Bull Run, Mirroring Historic 2020 Rally

NEO's price surged over 40% on April 8th, marking the highest daily gain of 2023. This rally follows a bullish signal from its weekly Relative Strength Index (RSI), mirroring a similar pattern that preceded its 2020 rise. The price movement has broken through a key resistance level at $14, suggesting the start of a potential new bullish cycle. The technical analysis indicates NEO may reach $28, while a decline below $17 could indicate a reversal.

NEO's Resurgence: Technical Indicators Signal Bullish Momentum, Mimicking 2020's Rally

April 8th witnessed a remarkable surge in the price of NEO, marking an impressive 40% increase, the highest daily gain recorded this year. This surge has ignited speculation that NEO may be poised for a prolonged bull run, mirroring its previous rally in 2020.

Historical Significance of NEO's Recent Movement

NEO, a veteran in the cryptocurrency landscape since 2016, has experienced both peaks and troughs over the years. During the previous bullish cycle, NEO failed to surpass its all-time high, instead reaching a lower high in 2021.

However, the recent price action is reminiscent of NEO's breakout in 2020, which ushered in a significant upward trend. This time, technical indicators are providing strong bullish signals that suggest history may be about to repeat itself.

Key Technical Analysis Indicators

The $14 resistance level has been a significant hurdle for NEO since May 2022. Repeated breakout attempts failed until February 2024, when the price finally breached this barrier.

Subsequently, after confirming the area as support in March, NEO accelerated its upward trajectory, reaching a high of $22.47 on April 8th.

The weekly Relative Strength Index (RSI) provides further bullish confirmation. Its recent movement mirrors that of 2020, when it signaled the start of an upward trend. Notably, the RSI has just risen above 70, a bullish indicator.

Intriguingly, the RSI displayed a similar pattern in 2020, coinciding with a price level of $20 and a breakout from the $14 resistance. The price subsequently consolidated for over 120 days before resuming its upward journey, leading to a nearly 700% gain and a peak of $141 in May 2021.

Bullish Price Prediction

A technical analysis of the daily time frame suggests a bullish trajectory for NEO. The wave count indicates a five-wave upward movement, with NEO currently in wave three. The extended third wave suggests further potential for growth.

Furthermore, fractal analysis reveals two completed A-B-C structures that resulted in breakouts from descending resistance lines and subsequent upward momentum. The second breakout, which occurred on April 8th, triggered the 40% price increase.

The possible target for wave three is a high of $28, calculated as 1.61 times the length of wave one.

Retest Possibility

However, a breakdown below the sub-wave one high of $17 would invalidate the bullish count and could lead to a retest of the $14 horizontal support level.

Echoes of the Past

The combination of a breakout, a substantial daily surge, and a bullish weekly RSI signal strongly resembles NEO's price action in the past. This raises the possibility of a comparable price run to that observed in 2020/2021.

Although the upward trend's precise trajectory may diverge from the previous rally, shorter time frames align with a positive outlook. This suggests that the most significant portion of NEO's price increase is yet to materialize.