NEO Price Watch: Small Correction from Bullish Breakout

NEO Price Key Highlights

  • NEO price recently broke out of a symmetrical triangle consolidation pattern on the 1-hour chart.
  • Price is pulling back from the breakout and might be due for a retest of the broken triangle resistance.
  • If the area of interest holds, NEO could gain more bullish traction and test the next upside targets.

NEO price could gain more traction on its bullish breakout if the pullback to the area of interest spurs a bounce.

Technical Indicators Signals

The 100 SMA is still below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, there’s still a strong chance for the selloff to continue at this point.

However, NEO has moved past the 100 SMA dynamic inflection point to show a bit of bullish pressure. Price has yet to break past the 200 SMA dynamic inflection point to indicate stronger bullish momentum.

RSI is on the move down, though, so there’s some selling pressure left. However, the oscillator also seems to be pulling up to indicate a potential return in bullish pressure.

Stochastic is also heading south to signal that sellers have the upper hand, but the oscillator is closing in on the oversold region to signal exhaustion. Turning back up could bring buyers back in and spur a bounce.

NEOUSD Chart from TradingView

Market Factors

Cryptocurrencies pulled back from their earlier rallies on negative commentary and an exchange hack last week. However, the rebound is still in play and there’s a good chance that buyers might keep defending near-term support zones.

For one, the industry developments have carried on despite regulatory checks related to AML and KYC requirements. A handful of altcoins have created their own independent blockchains while more companies continue to strike partnerships with crypto companies to tap into applications.

However, dollar demand and risk sentiment has also influenced NEO price action to some extent as trade-related headlines weighed on appetite for riskier assets.

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