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NEXO Technical Analysis: While Profits Still Intact, What Should Traders Do Next ?

source-logo  cryptoknowmics.com 18 November 2021 08:18, UTC

Nexo is a blockchain-based lending platform that offers users instant cryptocurrency-backed loans. Users deposit an accepted token — such as Bitcoin (BTC), Ether (ETH), Litecoin (LTC), or XRP (XRP) — as collateral to receive a loan in the form of a fiat currency or stablecoin. Nexo was founded by a team of finance professionals and crypto enthusiasts. The project was launched in April 2018.

Let us look at the technical analysis of NEXO.

Past Performance

For the past month, NEXO is on an uptrend. The investors have earned huge profits as the price has increased by 107.95% in the last 30 days. However, the price could not increase enough to rise beyond the current all-time high at $4.05.

NEXO opened on November 10, 2021, at $3.38. A week later, it closed on November 16, 2021, at $3.33. The 7-day haul witnessed a decrease of 1.47%.

Source: https://www.tradingview.com/x/HjB5uE0y/

NEXO Technical Analysis

For the short-term traders, the graph is showing a negative signal as the price flattened for a few days. In the longer run, the price is still on an uptrend, giving profits to traders. Currently, the NEXO coin is trading at $3.2064, which is 2.16% below yesterday’s close.

The OBV graph is showing that the buying volumes are less than the selling volumes. This is putting pressure on the price to go down.

The Relative Strength Index, currently at 61.43% from 79%, is showing that the bears are gaining control in the market, thus reducing the strength of the bulls.

The MACD graph is showing a bearish crossover in the last few days, and the fast line is continuing to move downwards. This can be a signal for a trend reversal to happen in the coming days.

Nexo, as announced on November 15, 2021, will once again begin "discretionally and periodically repurchasing" its native NEXO Token in the open market as well as at times and prices they consider appropriate.

As stated above, the allocated buyback amount is a record $100 million — nearly 10 times more than the previous $12 million program. Additional budgets may be allocated for future buybacks in accordance with company growth and market conditions.

Negative Signals for the Short-Term Traders

Nexo is facing a hard time getting on board with other crypto coins. The NEXO is down to almost -2.15% in the last 7 days. The coin is still showing risking framing segments for the past few days, the coin might have strong fundamentals but, we don’t think that it would a profitable asset in short term.

Looking at the Fib numbers, we find that the price has crossed all the current Fib levels due to its ongoing long-term uptrend, but this will change soon for a few days.

Thus, the indicators are showing negative signals for the short-term traders. The bears are gaining control of the market today, and the MACD is also predicting a downtrend in the coming days. For the long-term traders, they may set their targets at $3.55.

cryptoknowmics.com