Despite recent volatility in the cryptocurrency market, with Bitcoin (BTC) experiencing a retracement to $112K from its peak of $115K and Ethereum (ETH) dipping by 1.50%, Neo (NEO) stands out as a noteworthy performer. Today, NEO surged an impressive 16% – extending its weekly rally to a staggering 34%. This bullish performance is further bolstered by the appearance of a potential breakout pattern on NEO’s price chart that mirrors a similar trend in Bio Protocol (BIO).
Source: Coinmarketcap,
NEO’s price chart exhibits a bullish setup reminiscent of BIO’s recent breakout, showcasing a classic reversal pattern called a falling wedge. After forming this pattern and consolidating beneath its 100-day moving average resistance zone, BIO successfully reclaimed the 200-day moving average and ignited a parabolic rally of more than +300%.
Now, NEO appears to be following a similar path. The token has broken out of its falling wedge pattern, reclaimed both the 100-day and 200-day moving averages, and established a support base around the $8.0 red zone. Currently trading at $8.19, NEO displays encouraging structural strength as buyers defend this breakout level.
What’s Next for NEO?
If the fractal continues to unfold, holding above the $8.0 support could mark a launchpad for the next leg higher. Resistance levels lie near $11.41 and $15.42, suggesting a potential upside of up to 88% from current levels.
However, traders should be cautious. A breakdown below the red zone would invalidate the bullish setup and potentially drag NEO into a prolonged consolidation phase.