- NEO has re-tested its important horizontal support level near $5, confirming new buying strength and a structural shift in favor of a bullish outlook.
- Price consolidation below the 9-day EMA and 50-day SMA reflects continued accumulation since the sellers are getting ready for the continuation phase higher.
- Extended trading above the re-tested demand zone can provide a solid base, allowing NEO to test the $6.50 resistance in subsequent sessions.
NEO has regained its critical horizontal support zone, signaling renewed buyer activity and strengthening the coin’s broader technical outlook on higher timeframes.
NEO’s Structural Recovery After Liquidity Sweep
According to Alpha Crypto Signal, NEO has successfully reclaimed a vital horizontal support zone that previously acted as a strong demand area for months. The recovery followed a brief liquidity sweep beneath the $5 region, where price swiftly rebounded, showing renewed buyer control. This move reflects a structural shift, indicating that market participants continue to defend this zone aggressively.
The $5 region has served as a consistent higher timeframe demand zone, playing a pivotal role in stabilizing the market after each decline. Following the sharp drop and subsequent recovery, the market structure now favors accumulation rather than further sell pressure. The quick rebound also demonstrates traders’ confidence in this price level, with the market now showing early signs of stabilization.
Price currently trades around $5.39, showing a 1.66% increase in the last 24 hours, accompanied by a trading volume of over $29 million. This volume surge supports the view that active accumulation is taking place within this demand region, forming a base for potential future strength.
EMA and SMA Levels Define the Next Breakout Zone
NEO chart shows that price is ranging below 9-day Exponential Moving Average (EMA) at $5.46 and 50-day Simple Moving Average (SMA) at $6.24. These levels now constitute an immediate technical resistance level that is being closely observed for directional cues by traders. Persistent trading above these levels would validate the bullish continuation setup, especially if it is coupled with rising trading volumes.
Historically, when NEO reclaims such a critical zone after a downward flush, the asset often consolidates before launching a new upward trend. This consolidation helps absorb selling pressure and establish stronger market footing. Traders anticipate that maintaining price above the reclaimed support could prepare the market for another expansion leg.
The recovery also neutralized earlier bearish sentiment caused by a blue trendline break. Holding above $5 keeps the structure bullish, while a clean breakout above $6.50 may confirm an extended upward trajectory. The upcoming sessions will determine whether buyers can sustain control around this range.
Consolidation Phase Could Strengthen Market Position
Analysts note that consolidation above the reclaimed demand zone is likely to provide a stable foundation for NEO’s next movement phase. This stage often precedes broader expansion, especially when accompanied by increased buying activity and improving market sentiment. Sustaining this momentum could create favorable conditions for a medium-term trend shift.
The price action indicates that the market may be transitioning from volatility into structure-building, which historically supports stronger bullish phases. As accumulation continues, traders are likely to maintain their focus on the $5 support zone as the primary pivot level. Any consistent trading above this zone may further confirm market resilience.
With NEO stabilizing near its short-term averages and defending key support, technical conditions now favor cautious optimism. As long as buyers maintain control, the broader trend structure appears poised for gradual strengthening, aligning with the recovery phase highlighted by Alpha Crypto Signal.
