NEO (NEO) Price Prediction – When will NEO hit $50?
It was a positive start of 2023 for Neo (NEO), which moved more than 150% since the beginning. Moreover, the recent price surge was significant, which initiated a bullish trend in this token.
The surge in prices of this token can be attributed to the China narrative, along with contributions from Chinese content creators and developments in their corresponding crypto projects.
In 2023, narratives hold significant importance in the crypto market, with the Artificial Intelligence and Metaverse narratives already making an impact. Traders have increasingly adopted the China narrative, which has gained popularity after Hong Kong's plans for crypto and massive liquidity injections by the People's Bank of China (PBoC) coincided with the surge in crypto market capitalization.
An analyst on crypto Twitter believes that the China easing narrative is genuine, and the central bank has increased its liquidity injections in February 2023.
There are 70,538,831 NEO in circulation, almost 71% of the total supply. This token's current trading volume is $849,269,236, while the current trading volume in the last 24 hours was $113,715,855.
Should you invest in the NEO token?
Let’s see the upcoming price direction from the NEU/USDT technical analysis:
NEO/USDT Confirmed The Bullish Trend
In the broader context, NEO/USDT showed a massive downside pressure since March 2022 by moving down from 29.57 to 5.94 level. However, the recent buying pressure from the 5.94 swing low has appeared with a massive buying pressure, which is a sign of a strong trend change.
The bullish break-of-structure with a massive buying pressure above the 12.55 swing high confirmed the trend change with a strong bullish candlestick formation. Moreover, the buying momentum is supported by institutional traders, as shown by the latest high volume level.
The highest trading volume from August 2022 to February 2023 was spotted at 9.02 level, which is below the current price. In that case, the primary aim for this pair is to look for long opportunities if the price comes towards the high volume level again. Another significant area to look at is the 10.03 to 8.03 zone, which is a valid demand zone with a rally-base-rally formation.
The excessive buying pressure from the demand zone created a gap with the 20 DMA, while the RSI rebounded from the overbought 70% level.
Based on the daily price prediction, NEO/USDT could move lower towards the dynamic 20 EMA to complete the bearish correction before forming another bullish leg. The high probable buying opportunity needs a solid bottom formation at the 10.03 to 8.03 zone with a proper bullish rejection. In that case, the primary aim for the price is to test the 29.57 swing high.
The alternative trading approach is to look for short opportunities if a daily candle closes below the 8.00 psychological level.
NEO/USDT Ichimoku Cloud Trend Analysis
In the h4 timeframe, NEO/USDT is trading within a strong buying pressure. The massive upside momentum above the dynamic Kumo Cloud is a primary sign that bulls are controlling the market from where any bullish opportunity could offer a high probable trading opportunity.
On the other hand, a downside pressure below the dynamic Kijun Sen with a bearish crossover among Tenkan Sen and Kijun Sen shows a downside possibility in the price. The future cloud is still bullish, while the current price faces a support from the Kumo Cloud.
Based on the H4 structure, an immediate bullish recovery with a H4 close above the 13.00 level would open a buying opportunity in this pair. In that case, an ADX should remain stable above the 20.00 level while the main aim is to test the 16.00 resistance level.
On the other hand, further downside pressure with a candle close below the 10.76 support level would lower the price towards the 8.00 area from where another buying opportunity may come.
NEO/USDT Intraday Price Action Analysis
In the H4 timeframe, the broader outlook is still bullish based on the price action analysis, as the current visible range high volume level is at 8.75 level, below the current price.
However, the gap between the high volume level and the current price has extended, which can create a bearish pressure in the price as a mean reversion. Bears have taken the price below the dynamic 20 EMA already, which is a sign of an additional downside pressure.
The current TDI level is bearish in the indicator window as it reaches the lower band area. Moreover, the dynamic weekly VWAP is above the price, working as a resistance.
Based on this structure, investors should wait for the price to complete the profit taking before opening a long position. The first buying possibility may come from the 10.76 event level, where the main aim is to test the 16.00 level.
However, breaking below the 10.76 level could revisit the 8.75 high volume level but breaking below the 8.50 level could invalidate the buying possibility.
Is NEO/USDT A Buy?
Based on the current multi-timeframe analysis, NEOUSDT has a higher possibility of extending the current buying pressure but investors should wait for a valid zone before joining the bull run. A corrective price action and a bullish reversal in the H4 timeframe could open a high probable buying opportunity in this pair.
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