Nexo to relinquish Vauld— can prices hold up?

• Vauld rejected Nexo’s final offer of acquisition.
• Co-founder’s private letter mentioned about the rejection of the offer.
• Volume stands at $7.131 billion, falling by 14%.

Vauld, a crypto lending firm, rebuffed the long-standing acquisition offer from Nexo, which was under consideration since last July. Nexo being the larger competitor, has received a private letter from Vauld’s co-founder, about the fact that his company would reject the final proposal put forward by Nexo. 

The proposal was rejected due to the inability of Nexo to respond to the appraisal queries for the solvency evaluation that would provide guarantee to the creditors. Nexo’s declared redemption from the US implies that the creditors in the country have no grounds for complaint if the company messes up. 

Nexo has yet to publish a financial structure regarding its capacity to bridge the $400 million void in Vauld’s income statement. Vauld was among the several companies to file for Chapter11 Bankruptcy after the collapse of Celsius. 

How did the prices react 

The NEXO prices have formed a parallel channel with its recent movement. The current action takes place near the upper brim of the channel with 20 and 50 EMA below and 100 and 200 EMA above the prices. The falling volume and rising OBV creates an optimistic outlook for NEXO holders. If current prices of $0.70 sustain above the breakout level $0.72, an uptrend may be established reaching up to $0.83.

The slowly escalating CMF suggests the prices may witness a slow-paced surge in the coming term. The MACD records a prolonged buying action, with consistent rise in the interest. The RSI holds a spot in the region above the half line, depicting buyer influence. 

The smaller time frame reflects prices rising gradually. The CMF shoots up to the higher ranges in the positive zone, establishing a high run. The MACD on the other hand records a bunch of sellers, due to the news drop. Similar emotion is reflected in the falling RSI, that enters the seller active range of 40-50. 

Conclusion

The market is a dilemma, as the holders are unable to decide about the news release, whereas the token shows chances of surge. The support zone of $0.60 is crucial and holders must keep an eye on the break out level of $0.72.

Technical levels

Support levels: $0.60 and $0.55

Resistance levels: $0.90 and $0.83

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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