Neo Network (NEO), a leading Chinese layer-1 solution, has been gaining attention as it battles upper trendline resistance and experiences a +7% pump in price action. This raises the question: is it too late to buy NEO? In this article, we will delve into NEO’s recent developments, technical indicators, and potential for a breakout, providing valuable insights for investors.
Efforts to Grow the Ecosystem
Neo Co-Founder Da Hongfei recently conducted an on-boarding campaign at Token2049, highlighting the importance of stimulating growth and enticing new users to embrace Web3. The need for user-friendly wallets to onboard Web3 users was emphasized. Additionally, Flamingo Finance has restored cross-chain functionality on the growing DeFi protocol, further expanding NEO’s ecosystem.
After the recent upside move, NEO is trading high in the channel with a market price of $7.49. Although there has been a 24-hour change of -2.73%, NEO’s price action is battling major resistance from a descendant upper trendline. A breakout at this point could potentially trigger a new rally for NEO.
Technical Analysis
NEO’s technical structure appears strong, especially after the bounce out of a double-bottomed structure. This move allowed NEO to reclaim a poised position atop the 20DMA. Considering this, the upside potential looks promising, with the 200DMA as a potential target in the event of a breakout.
Looking at NEO’s indicators, the RSI (Relative Strength Index) initially heated up to an overbought signal but rapidly cooled down to a neutral 52 following the localized retracement. This indicates consolidation, which could potentially trigger a breakout. The MACD (Moving Average Convergence Divergence) is showing bullish divergence at 0.07, reflecting the momentum behind the bounce from double-bottomed support.
NEO has an upside target at $8.60 (+14.97%), which would result in a breakout from the current descendant trading channel and position it for a re-test of the 200DMA resistance. The downside risk seems limited, with a retracement likely to find support at the 20DMA at $7.27 (-2.81%). The risk-to-reward ratio for NEO stands at 5.33, making it an attractive entry with significant upside potential.
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NEO is currently on the verge of a breakout, with price action battling upper trendline resistance. Despite certain indicators showing consolidation, the overall technical structure appears strong, with the potential for a rally. The risk-to-reward ratio for NEO is favorable, making it an appealing investment option.
Meanwhile, Launchpad XYZ offers investors the opportunity to explore a comprehensive Web3 ecosystem with the $LPX token. With its range of features and potential for substantial growth, Launchpad XYZ is a project investors should keep an eye on in 2023.
Please note that investing in crypto assets carries high risk. This article is provided for informational purposes only and does not constitute investment advice. Proceed with caution and be aware of the potential for loss of capital.
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