Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Nexo price prediction suggests that Nexo’s price could decline, if the bulls fail to support the price in breaking out of the descending triangle. Nexo token is presently moving near the demand zone, though the long wicks of candlesticks suggest there is volatility in price action. As the candle wicks are moving in a bullish direction, it suggests there is significant buying pressure in the price.
The candle wicks are formed when abrupt buying and selling activity takes place in the market. The making of unnaturally long wicks is often associated with bull or bear traps.
The candlesticks are forming a descending triangle pattern on the daily chart. Although the price is presently approaching the demand zone, the positive breakout of the triangle may not take place in the immediate future. However, once the breakout is made, it can present a lucrative opportunity for the buyers as descending triangles often give significant moves ranging towards their previous high.
The present value of Nexo is $0.626 (press time). It has a market capitalization of around $349.8 Million, which surged over the past few weeks.
Nexo Price Prediction: Technical Analysis on 1-Day Chart
Presently, the Nexo token is moving near the demand zone of the descending triangle. The price action indicates there is volatility in the market which may cause a few buyers to hesitate to enter. The descending triangle may give decent target points for the buyers. The first resistance point is 12% above near $0.700, The second barrier is 36% upwards around $0.800, and the final target point is around $1.000.
The RSI line has reached the overbought level on the daily timeframe. The current RSI value of the Nexo token is 64.50 points, whereas the 14 SMA is providing support to it at around 59.15 points.
Technical Analysis on Daily Chart of NEXO on Weekly Chart
The weekly timeframe is also presenting a similar picture as the daily timeframe. The price is moving near the demand zone, whereas the stochastic RSI is moving near its previous support level.
As the price action is forming the same patterns on the crucial time frame, it strengthens the probability that multiple investors who work on different timeframes may observe the pattern, and subsequently reinforce the estimated outcome, if the price moves towards the desired trend.
The RSI line is making a bullish divergence on the weekly timeframe by making a higher high and low pattern. However, it is presently facing resistance from 14 SMA.
Conclusion
According to NEXO price prediction, investors may prefer to practice caution as the price is yet to make a breakout. The ideal opportunity to enter a descending triangle is said to be made when the price makes a breakout and takes a successful retest.
Technical Levels:
Support – $0.0600
Resistance – $0.700, $0.800 and $1.000
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/07/10/nexo-price-prediction-will-nexo-price-break-out-of-the-triangle/