Neo price was stuck in a wide range of consolidation zone ranging between $9 and $13.60 since mid-February. During the month of May, RPL price reached the support and started to rise toward $13.60 but the move was halted at $11 which triggered a drop in the price. The cryptocurrency price gained enough bearish momentum to shatter the support level of $9.
Neo price finally shattered and retested the support to move downwards. The bearish move caused a loss of roughly 24% and the price touched a low of $6.82. Recently, Neo price has formed support at the $7.45 level. It has entered a consolidation zone ranging between $7.45 and $7.95. If bulls can push the price above the $7.95 level, there is a high probability for Neo to retest the support turned resistance of $9.
A break of the $9 level would start the journey for the price to reach $11. For the price to retest the annual high, it needs to rise above the $13.60 level. On the other hand, if the breakout happens in the downward direction, Neo’s price might melt down toward the $6 level and lose all the gains it made in 2023. Previously, Neo price has attempted to rise above $7.95 but received rejection and the current candle is striving to form a support.
Will Neo Price Fall to $6.40?
Neo price trades below 20,50,100 and 200-day EMAs suggesting bearish momentum in the price. A rise above $11 would push the price above all the major EMAs. Chaikin money flow score is -0.06 indicating slight weakness in the market. The bands of Bollinger have expanded, referring to the rising volatility.
Neo price has reached near the lower band of Bollinger and might head toward the 20-day SMA of Bollinger bands. The long/short ratio of Neo is 0.92 with 48.08% longs and 51.92% shorts indicating increased bearish pressure near the resistance level of $7.95 in the last 24 hours. RSI has started to rise after almost entering the oversold zone suggesting active participation of buyers to protect the price from a downfall.
Conclusion
The market structure and price action of Neo are in an indecisive phase as the cryptocurrency price is stuck in a consolidation zone. A break and close above $7.95 might provide confirmation regarding a move toward support turned resistance of $9.
For the price to retest the annual highs and regain the trust of buyers, it needs to rise above the $11 level. The technical parameter indicates that the price is still under bearish pressure but the buyers have started to jump in the market to protect the price from further downfall.
Technical Levels
Major support: $7.45 and $6.40
Major resistance: $9 and $11
