NEO is attempting to stabilise around critical monthly support, after suffering a brutal sell-off towards the $9.35 (€8.24, £7.22) level earlier this week.
NEO technical analysis shows that the cryptocurrency needs to anchor price back above the $10.50 level to encourage fresh buying interest.
NEO medium-term price trend
NEO continues to trade on the back foot after suffering a major double-digit decline towards the $9.50 level earlier this week.
To put the recent decline in context, the NEO/USD pair was trading towards the $17.00 level last month, which means that the cryptocurrency has lost around 45 per cent in value over the last three weeks.
NEO price analysis shows that bulls need to defend the $9.00 level to avoid triggering a large bullish pattern on the daily timeframe.
The February rally failed to invalidate the large bearish pattern on the daily timeframe, making it more important that ever that the NEO/USD pair holds above the neckline of the mentioned pattern, around the $9.00 level.
Fibonacci analysis on the daily timeframe shows that the 61.8 Fibonacci retracement of the current yearly high to the October 2019 low, at $10.50, is now key support.
Watch out for a major upcoming battle between bulls and bears around the $9.00 to $10.50 technical area.
NEO short-term price trend
NEO technical analysis over the short term shows that the latest decline has failed to invalidate a large bullish pattern across the lower timeframe.
The one-hour timeframe shows a large inverted head-and-shoulders pattern, which remains valid while price trades above the $7.70 level.
Looking more closely at the bullish pattern, the neckline neckline of the bullish pattern is located around the $13.40 level.
According to the size of the bearish pattern, the cryptocurrency could rally towards the $20.00 resistance level.
Overall, as long as the bullish pattern remains valid, a powerful counter-rally in the NE/USD pair towards the $13.40 and finally the $20.00 level could occur.
NEO technical summary
NEO technical analysis shows that a major directional move could occur once the $9.00 to $10.50 price range is breached. The lower timeframes continue to show a valid bullish reversal pattern with substantial upside potential.
