NEO on the cusp of a 10% upswing to $25 if this crucial support holds
|- NEO bulls are focused on breaking the descending channel's upper boundary resistance, ahead of recovery to $25.
- NEO/USD must also close the day above the 200-day SMA to ensure the market's stability remains intact.
NEO has generally nursed wounds within a descending parallel channel since the peak at $25, reached in September. Initially, the breakdown was unstoppable, but the smart contract token found and embraced balance at $14. Bullish effort and attention in the first two weeks of November were channeled towards recovery. At the moment, NEO/USD is doddering at $15.5 amid widespread consolidation in the market. A breakout is anticipated to elevate NEO above several resistances for an upswing to $25.
NEO prepares for a groundbreaking liftoff
NEO/USD is holding the ground at the descending channel's upper boundary. The mission among the bulls is to step above this resistance in the near term. However, the Relative Strength Index (RSI) shines a light on the prevailing consolidation. Therefore, the anticipated breakout may take longer to materialize.
Trading above the channel would boost NEO toward September highs at $25. On the other hand, delays are foreseen at the 50 Simple Moving Average and the 100 SMA, slightly under $18. Further up, buyers will have to brace for more bumps at $22 before the price makes the final approach to $25.
NEO/USD daily chart
The 4-hour chart adds credulity to the bullish scenario, highlighting immense support below NEO. Closing above the 50 SMA and the 100 SMA will confirm that the market is stable. Here, buyers will have the opportunity to increase their positions.
If enough buying pressure is generated, NEO would slice through the descending trendline resistance and lift towards $25. It is worth noting that the 200 SMA may absorb some of the buying pressure.
NEO/USD 4-hour chart
NEO's potential breakout will be invalidated if the channel's upper boundary rejects the price. Moreover, closing under the 200-day SMA might trigger intense selling pressure. On the downside, support is envisaged at $12, $10 and the channel's lower boundary.
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