NEXO in price discovery mode: pay attention to this level
- Nexo's price is soaring on great fundamentals.
- NEXO reached as high as $1.787 before descending slightly.
- The cryptocurrency is fighting to close the daily candle above the $1.587 pivot point.
Nexo (NEXO) has broken out of its steady sideways trading trend little before the start of February, with the cryptocurrency entering price discovery mode. NEXO has continued moving up throughout the day, and is currently contesting the 50% Fib retracement level. Where will it go, and should you buy some NEXO now?
Fundamental analysis: platform growth and DeFi expansion pushes the price up
Nexo is a blockchain-based lending platform built to offer its users instant cryptocurrency-backed loans. Its users deposit an accepted token, such as BTC, ETH, LTC, or XRP as collateral and then receive a loan in the form of a fiat currency or stablecoin. Nexo’s native token, NEXO, has the option to grant users that locked the token on the platform benefits such as discounts on interest accumulated on loans or the opportunity to receive interest payments on deposited funds. Token holders are also eligible to receive dividends from Nexo’s profits.
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At the time of writing, NEXO is trading for $1.585, which represents a price increase of 131.81% when compared to the previous month’s value. Nexo is currently the 55th-largest cryptocurrency by market cap, boasting a value of $878.50 million.
NEXO/USD technical analysis: $1.587 acting as the pivot point
Ever since NEXO’s break of the 23.6% Fib retracement level, the volume has been ascending. That, on top of good fundamentals, has pushed its price further up. NEXO is currently fighting for the 50% Fib retracement level of $1.587, which is currently acting as the pivot point.
NEXO must close today’s candle above the pivot point in order to remain bullish. In case that does not happen, we may expect the cryptocurrency to pull back to its immediate support levels.
Tezos’ RSI on the daily time-frame is currently deep into the overbought area, with its current value sitting at 88.55.
NEXO’s hourly chart shows us the current fight for the 50% Fib retracement level of $1.587. It is clear that this level should be considered a major pivot point and a likely determinant of Nexo’s future price movement (at least in the short term). NEXO’s downside is, however, guarded by the ascending 21-hour exponential moving average, which is adding to the pressure on the $1.587 level.
Traders have the option to watch the outcome of the 50% Fib retracement level fight and trade along whichever way the cryptocurrency goes. If NEXO manages to push past this level, we may see an attempt of reaching $1.787 or even $1.95. When it comes to the downside, NEXO is well-protected right above the 38.2% Fib retracement level of $1.222.