NEO Technical Analysis: Super Fast Bullish Recovery Soon To Reach $35

The NEO coin price gives a bullish breakout of the inverted head and shoulder pattern in the daily chart with the recent bullish candle of 10%. Moreover, the pattern breakout surpasses the 50-day EMA and hints at reaching the 200-day EMA. Will the bullish rally reach the $35 mark?

Key technical points:

Past Performance of NEO

On February 17th, the NEO coin price imitates the Bitcoin price action with a 7% retracement resulting in a bearish engulfing candlestick. However, as the BTC bears start to take a breather, the bulls overtake the trend control in NEO/USD chart. It is evident by the 10% growth in a single day resulting in the breakout of $25.

Observing the bigger picture, the NEO coin price resonated between $21 and $25 during the early days of January 2022, thus creating the left shoulder. However, the prices fell to $17before a 40% boom from $17 to regain the $25 mark and complete the head. 

The selling pressure at $25 led to a consolidation in a sideways trend before the bulls managed to exceed the $25 mark. Thus, completing the left shoulder and breaking above the inverted head and shoulder pattern.

Source-Tradingview

NEO Technical Analysis 

Currently, the market price of NEO is $26.53, with a 1.08% bullish continuation of the overnight growth. Moreover, the increased buying pressure is evident by the 190% growth in the intraday trading volume. Moreover, the $25 breakout rally can reach the next resistance level at $30; however, the NEO coin price must surpass the 100-day EMA to achieve this feat. But the breakout of the head and shoulder pattern forecasts a rally above the $30 mark. 

The crucial 50, 100, and 200-day EMAs maintain a bearish alignment as the altcoin prices outperform the 50-day average and challenge the 100-day EMA. However, a retracement from the 100-day EMA to retest the bullish pattern breakout at $25 is plausible. 

The RSI Indicator showcases a sharp reversal in trend, as the slope shows a V-shape recovery in the nearly overbought zone. The slope approaches the 70% mark with a slightly flattish growth while remaining above the 14-day SMA. 

In short, the technical analysis for the NEO coin shows a lightning reversal in trend control and a bullish breakout that may shortly test the 200-day EMA.

Upcoming Trend

The NEO coin prices find the upcoming trend of highly bullish anticipation with the inverted head and shoulder breakout at the $25 mark. Moreover, the price outperforms the last 50-day exponential moving average, teasing a bull run to the 200-day EMA.

However, the fallout of the 50-day EMA can help the bears override the trend control. Hence, traders can put a stop-loss slightly below the 50-day EMA. 

Support Levels: $25 and $20

Resistance Levels: $30 and $35