NEO/USDT — Descending Channel: Breakout or Further Downside?

On the NEO/USDT 1D timeframe, price action is still moving within a clear downtrend structure, indicated by a Descending Channel (Bearish Channel).

Red line → Dynamic resistance (upper trendline)

Yellow line → Dynamic support (lower trendline)

Current price is in the mid–upper channel area, نزدیک resistance


This structure shows that the market is still under bearish pressure, but a short-term reversal potential is starting to emerge.


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📐 Pattern: Descending Channel

A Descending Channel is formed by:

Lower Highs (LH)

Lower Lows (LL)


📌 Characteristics:

Main bias: Bearish

However, it often leads to a bullish breakout if resistance is broken


In this chart:

Price has bounced multiple times from channel support

Currently testing resistance → a critical zone



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🟢 Bullish Scenario

📈 Bullish confirmation if:

Price breaks and closes above the channel resistance (red line)

Breaks above the ~2.95 level


🎯 Upside targets:

3.30

3.50

4.00


💡 Meaning:
A breakout from this channel could signal an early trend reversal or at least a relief rally with strong upside potential.


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🔴 Bearish Scenario

📉 Bearish continuation if:

Price fails to break out and gets rejected at resistance

Moves back down inside the channel


🎯 Downside targets:

Retest of channel support

Around 2.30 – 2.10


💡 If support breaks:

Potential for deeper downside (trend continuation)



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⚠️ Key Levels

Main resistance: 2.95

Next resistance: 3.30 – 3.50 – 4.00

Strong support: 2.30 area

Critical support: 2.10



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🧠 Conclusion

Main trend remains bearish (descending channel)

Price is at a crucial area → near resistance

A significant move is likely once a key level is broken


👉 Main focus: breakout or rejection around 2.95

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