After a successful start to the year, Nexo Price (NEXO) is trading near record highs printed recently. Here we take a look at where the coin can trade in the coming months.
What is Nexo?
The team that founded Credissimo also created Nexo. The team behind the platform states that Nexo is the most advanced platform for instant crypto lending and the only blockchain company to provide its services in over 40 fiat currencies and in over 200 jurisdictions.
Nexo allows customers to use their assets as collateral and then withdraw money. Instead of simply buying and selling cryptocurrencies, Nexo was created to provide customers with instant crypto loans. Nexo promises no hidden fees, no capital gains tax, and no credit checks.
Like other cryptocurrencies, the platform uses blockchain technology, smart contracts, and algorithmic procedures, all of which are executed in its native Nexo Oracle module.
The client can apply for loans in USD or EUR, but must first transfer their crypto holdings to their Nexo wallet. Oracle Nexo will issue the loan once the transferred cryptos are confirmed by the blockchain.
Nexo says its users can access instant cash and be able to store the coin in any Ethereum-enabled wallet.
How has the price of Nexo parts worked so far?
The Nexo price is up about 400% year over year (YTD). Like some other cryptocurrencies, Nexo has seen a sharp increase in the price of its native token amid the acceleration in crypto adoption.
In a year where Tesla, Mastercard, Visa, PayPal and others embraced cryptocurrencies and their underlying blockchain technology, Next price has managed to ride the bullish wave and print record highs of 4.21 $ in May.
Last month, when the Nexo price closed in the red, was September. In February alone, Nexo saw its price explode by almost 150%. This indicates an extremely strong uptrend that has helped the digital asset raise its market cap to over $ 2 billion.
From a technical analysis perspective, it is quite difficult to predict where the Nexo price will go given the magnitude of this higher move in 2021 so far. As no movement in financial markets occurs vertically, although this year’s Nexo price action suggests otherwise, it is likely that investors will see a market correction when the bulls take profit.
In this space, the Fibonacci retracement lines help us see how much the Nexo price could potentially correct itself. The first major 38.2% retracement line is $ 2.63, which is about 30% below the current market price. This region will also soon be home to the 100 daily moving average (the blue line), which is quickly catching up to this bull market.
Additionally, price action created two equal highs above the $ 4.10 mark. A break below the neckline (the middle blue line) would activate the double top graphic pattern. This is a bearish chart formation that could threaten to take the price action below $ 2, which is where the measured target of the double top formation is.
Looking higher, Fibonacci extension lines help us gauge potential targets in case the market goes up again. In this case, Nexo bulls will target moves at $ 4.45 and $ 4.85, where there is a 127.2% extension line and a 161.8% extension line, respectively. It is not yet clear if a trip to these levels will happen soon, or if Nexo price action will consolidate at lower levels first before continuing to rise.
Of course, a lot will depend on Bitcoin and how the world’s largest cryptocurrency trades for the rest of the year. Keep in mind that BTC weighs around 45% of the total cryptocurrency market, therefore any larger move in Bitcoin is likely to generate major moves in the cryptocurrency market.
After a rapid upward movement in the first four months of the current year, Nexo’s bulls and bears are expected to continue trading hits in 2021 as price action heats up. While the bulls have clearly won the early rounds, a market correction could create more uncertainty at the end of the year.