NEXO Technical Analysis: Constant Lower Price Rejection Hints Bullish Reversal to $3.5
Nexo is a crypto-lending blockchain-based platform that offers instant crypto loans. Users can deposit BTC, ETH, LTC, or XRP as collateral to receive loans.
In the latest news, the lending platform has started an NFT-backed lending program with the backing of Three Arrow Capital. Bored Apes and CryptoPunks are accepted as collateral to receive instant loans.
Read more to know more about the technical analysis of the NEXO token.
Past Performance of NEXO
The NEXO coin price shows constant lower price rejection near the $2 mark and keeps an overall sideways movement in the daily chart. In the last 2 weeks, the coin price has shown a negative retracement, but the long-tailed candles help sustain the price higher.
NEXO Technical Analysis
A detailed look into the NEXO coin price action shows a solid resistance trend line in the 4-hour chart. The trend line has pushed down multiple bullish growths and results in the breakdown of multiple support levels.
Traders can expect another bearish retracement to the $2 support level before a decisive breakout. Targets on the bullish side are at $2.9 and $3.5 with a stop loss below the $2 mark.
However, if the price breaks below the $2 mark, selling targets are at $1.6 and $1.30 with a stop loss above the $2.20 mark.
The crucial EMAs - 50, 100, and 200 in the 4-hour chart maintain a bearish alignment with the 50-period EMA acting as a constant dynamic resistance.
The RSI indicator at 52% shows the slope crossing above the central line in the 4-hour chart. Furthermore, the MACD indicator in the 4-hour chart shows the buyers and sellers line rising higher to the central line with the recent bullish crossover.
Therefore, the indicators in the 4-hour chart show a rising underlying potential in the coin price, while the EMAs showcase dynamic resistance.
Upcoming Trend
Currently, the NEXO coin price remains within the resistance trend line and shows a sideways momentum in the daily chart. However, the multiple candles with huge lower price rejection indicate a high possibility of a bullish reversal.