Leading Chinese layer-1 solution Neo Network (NEO) is experiencing a significant pump, with price action battling upper trendline resistance and showing a +7% increase. This surge comes as Neo Co-Founder Da Hongfei emphasized the need for growth and user-friendly wallets during the Token2049 event. In addition, Flamingo Finance restored cross-chain functionality on its DeFi protocol. With NEO currently trading high in the channel, the question arises – is it too late to buy NEO?
NEO is currently trading at $7.49, representing a 24-hour change of -2.73%. The price action is encountering major resistance from a descendant upper trendline, and a breakout at this level could potentially ignite a new rally for NEO. The recent bounce out of a double-bottomed structure has provided NEO with a strong technical structure, reclaiming its position atop the 20DMA at $7.27. In the event of a breakout, the next target for NEO would be the 200DMA at $9.54.
Analyzing NEO’s indicators, we can observe that the RSI has reached an overbought signal but quickly cooled down to a neutral 52 following a localized retracement. This indicates consolidation and the possibility of a breakout. The MACD is demonstrating bullish divergence at 0.07, reflecting the momentum behind the bounce from double-bottomed support. Overall, NEO appears to be in a strong position for a breakout.
Should a breakout occur, NEO has an upside target of $8.60, representing a 14.97% increase. This move would enable NEO to break out of the current descendant trading channel and potentially re-test the 200DMA resistance. Furthermore, the downside risk for NEO remains limited, with support expected at the 20DMA at $7.27, representing a decrease of only 2.81%. With a risk:reward ratio of 5.33, NEO presents itself as an attractive investment opportunity with significant upside potential.
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NEO is currently on the verge of a breakout, and it does not seem too late to buy NEO. With strong technicals and indicators pointing towards a potential rally, NEO presents an opportunity for investors. However, Launchpad XYZ offers an alternative investment avenue with its innovative ecosystem and the potential for significant growth. Whether one chooses NEO or Launchpad XYZ, it is important to remember that investing in cryptocurrencies is a high-risk venture and should be approached cautiously.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. Investors should conduct their own research before making any investment decisions.