The broader cryptocurrency market is experiencing a steady rebound following a period of significant volatility last week. This recovery has seen Ethereum (ETH) bounce back above the $3,000 mark after dipping to a low of $2,622. This improved market sentiment is now contributing to a resurgence in momentum for several memecoins, including Neiro (NEIRO).
While NEIRO is showing modest gains today, its price structure on the chart is particularly noteworthy. A well-defined harmonic pattern is currently developing, which indicates the potential for a significant upward movement in the upcoming trading sessions.
Bullish Butterfly Harmonic Pattern Identified
Analysis of Neiro on the daily timeframe suggests the formation of a Bullish Butterfly Harmonic Pattern. This particular chart structure is recognized for its ability to signal trend reversals or substantial corrective bounces following prolonged downtrends.
The pattern originated with a strong upward impulse move from point X, located near $0.00019480, reaching a swing high at point A. A subsequent retracement found support at point B, which aligns with the 0.785 Fibonacci retracement level of the XA leg. From this point, NEIRO experienced an upward movement to point C, testing the 1.113 Fibonacci extension before entering a sustained and steady decline.
This decline has now brought the price to point D, situated at $0.00010854. This level is positioned around the 1.617 extension of the XA move, which is a standard measurement for the completion of a Bullish Butterfly pattern. The price has recently seen a bounce to approximately $0.0001377 and is currently trading just below its 50-day moving average, which is at $0.0001510. This entire price range constitutes the Potential Reversal Zone (PRZ), a critical area where a bullish reaction is typically expected to commence if buyers demonstrate conviction.
Outlook for NEIRO
The immediate focus for NEIRO will be its reaction within this PRZ. Should buyers successfully drive the price back above the 50-day moving average and maintain upward momentum, the harmonic pattern indicates a potential rally towards higher Fibonacci targets. These key target levels are situated between $0.00039193, which corresponds to the 0.382 Fibonacci retracement of the CD leg, and $0.00051373, aligning with the 0.618 Fibonacci level. This price zone is considered the primary target region for the Butterfly pattern and has historically been where such setups achieve their bullish follow-through before either entering consolidation or experiencing pullbacks.
Conversely, if NEIRO fails to sustain its position above the current support level at point D, the pattern's anticipated reversal may be delayed, potentially leading to further price weakness before a more definitive bottom is established.