NEXO Technical Analysis: Consolidation Breakout Teases 40% Jump
NEXO coin price action consolidates close to a long-coming resistance trendline of a descending triangle. Will the bulls surpass the threshold? Nexo is the first-ever provider of instant cryptocurrency-backed loans that intends to solve inefficiencies in the lending market. The automated lending process makes use of intelligent contracts, as well as, an Oracle that runs on the Ethereum blockchain to manage loans. When a customer transfers money to a Nexo-controlled account, an oracle is able to establish the loan, and the borrower receives the funds immediately. If the user makes a payment to pay back this loan system returns the cryptocurrency and registers each transaction in the blockchain. Let us move ahead to read about NEXO technical analysis.
Past Performance of NEXO
NEXO coin price action jumps more than 20% from the demand found near the $2 mark. The rally rests close to the resistance trendline as it consolidates within the range of 12th January daily candlestick. The range is between $2.15 and $2.35, and a bullish reversal is seen within the range, teasing a possible breakout opportunity. NEXO/USD Daily Chart
NEXO Technical Analysis
The breakout of the consolidation range will bring the breakout of a descending triangle pattern. The post-breakout rally can drive the NEXO prices past the $3 milestone and reach the $3.5 mark. Therefore, the potential breakout can result in a price jump of more than 40%. The long-coming correction phase finally breaks above the Volume Weighted Moving Average (VWMA) after multiple bullish attempts and a fakeout in early January. The NEXO coin price rests above the VWMA in the daily chart, reflecting increased chances of a bullish breakout. The Momentum indicator shows a positive value of 0.31 reflecting a bull run in action as the slope breaks above the zero line. Moreover, the spike in the slope reflects a solid bullish momentum. The MACD indicator shows a bullish crossover of the MACD and signal lines below the zero line in the daily chart. The lines rise higher in a bullish alignment towards the zero line despite shaking the fast line. Therefore, the technical indicators side with the bullish powers teasing a bullish breakout in the NEXO coin.
The NEXO coin price shows an increased price momentum and a boom in buying pressure that may soon break above the short-term consolidation. Therefore, the breakout of the descending triangle seems imminent. A post-breakout rally can drive the coin past the psychological resistance mark at $3. Therefore, traders can shortly find a breakout opportunity. The NEXO coin price chart suggests the next resistance levels at $2.65 and $3 after the resistance trendline. Moreover, the support levels are at $2 and $1.78. At the time of writing, a "BUY" signal indicating a rise in bullish sentiments is given by TradingView.
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