From CCN Markets: Many large-cap cryptos like Litecoin and Ethereum have skyrocketed in the past few weeks. While these cryptocurrencies have made significant gains, others, including NEO, have not done as well. It seems we are not the only ones noticing how the coin dubbed “Chinese Ethereum” has fallen behind its competitors.
On June 13, a pseudonymous Twitter account called Trading Room tweeted that NEO is “the biggest straggler among the frontline coins”. The Twitter post mentioned three critical factors regarding cryptocurrency:
- NEO / BTC is preparing for a big rise soon
- The expectation that NEO / USDT will make massive gains between 112% and 264%
- NEO is aimed at investors with a medium or long-term investment horizon.
In fact, @tradingroomapp predicted that NEO will surpass both Bitcoin and TetherUS:
The June 13 tweet also includes a diagram that illustrates the logic behind the call. According to the Trading Room, NEO is moving in an ascending channel in the weekly timeframe. The image also suggests that NEO is a candidate to buy on dips as long as it respects the uptrend line or the channel’s diagonal support. Additionally, the diagram image mentions that the cryptocurrency needs to remove the diagonal resistance in order to get the fireworks going.
Should NEO eliminate the channel’s diagonal resistance, Trading Room outlined three price targets. That’s $ 27,355, $ 32,255, and $ 44.66, respectively. At the time the tweet was posted, the cryptocurrency was trading at $ 12.842. Since then, NEO has made incredibly bullish moves that support Trading Room’s thesis.
NEO Mighty Bullish after prolonged outbreak
It’s been less than a week since the analyst made the call and the cryptocurrency is already moving as expected. A quick look at the three-day chart shows that NEO has cleared the $ 13.00 resistance. This triggered the breakout of a large ascending triangle pattern.
NEO erupts after seven months of accumulation | Source: TradingView
From a macroeconomic point of view, the breakout signals the end of the downtrend in the market. More importantly, the ascending triangle breakout has a target price of $ 20.50 based on the height of the pattern.
If NEO hits this price target, the cryptocurrency can kill two birds with one stone. It can offset the $ 20.00 horizontal resistance. More importantly, it can push the crypto token over the diagonal resistance of the ascending channel. Should that happen, the trading room predicts a big breakout and this crypto would reward investors with handsome profits.
Conclusion: This coin seems to be on the hunt for catching up with other cryptos
Recent price moves appear to support the analyst’s forecast. Ideally, it could hold $ 13.00 and convert former resistance into support. Defending this price range could help NEO generate the momentum to target $ 20.50. By then, medium- and long-term investors could start partying. The cryptocurrency could achieve the goals presented by the analyst.
Last modified: March 4, 2021 2:40 p.m.
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