- A bullish breakout from $0.95 resistance could set NEXO price for a potential surge of 8.5% before challenging the next resistance.
- The daily chart analysis shows a short-term consolidation trend of over 2 months, resonating within the triangle pattern.
- Large holders began accumulating NEXO once the price slipped below the $1 mark.
- The coin price trading below the 100-and-200-day EMAs indicates the broader trend as bearish.
NEXO, the native ERC-20 token of the Nexo platform, recorded a 1.92% surge on Tuesday to reach $0.958 trading value. This jump aligns with the relief rally in the broader crypto market amid the declining trend of the U.S. dollar. However, the coin price shows sustainability in recent rebound as on-chain data shows renewed accumulation from whales. Will the altcoin reclaim its $1mark?
Whale-Driven Resilience Keeps NEXO Firm Despite Recent Pullbacks
In the last 48 hours, the NEXO price bounced from $0.892 to $0.9658, registering a 8% surge. Consequently, the asset’s market cap reached $616 million. The jump followed the general bullish sentiment in market as Bitcoin shows stability above $85,000 and the dollar currency continued
According to CryptoQuant’s on-chain data, whales have been quite active in trading the NEXO token in January: As the spot price of NEXO declined below $1, whales have begun an accumulation pattern, anticipating a good entry point.
The coin traded between $0.90 and $1.00 in mid January with an intact uptrend structure, accompanied by short-term pullbacks (below EMA20). This whale-driven volume argues for resilience.
Broader platform metrics depict increasing collateral accumulation, with collateral accumulation index hitting $1.52 million in mid-January, as highlighted by the CryptoQuant analyst Arab Chain.
The index implies some deposit of or use of assets as collateral for loans rather than outright sale by whales and institutions. This reduces selling pressure at the spot and is a sign of confidence in the long-term outlook of NEXO.
Historically, whale accumulation has coincided with major bottoms or price rallies in this asset.
NEXO Price Rides Short-Term Consolidation With Triangle Pattern
Over the past two months, the NEXO price has resonated within a confined range between $1.034 and an ascending support trendline. This structure reveals the ascending triangle pattern, which is often spotted between an established uptrend.
Typically, the consolidation in this pattern is the prevailing trend to regain strength. However, the breakout from either side would be the determining factor. With today’s jump, the coin buyers managed to surpass the middle line with $0.95 resistance.
The price also reclaimed the 20-and-50-day exponential moving averages, indicating an initial shift in market sentiment. Meanwhile, the momentum indicator RSI at 50% suggest the market sees.
With sustained buying, the coin buyers could push the asset another 8.55% before challenging the key resistance. A potential breakout from this resistance will accelerate the buying pressure for a sustained recovery ahead.
The post-breakout rally could push the asset coin price to a potential target of $1.15, followed by $1.25.
On the contrary, if the coin price faced renewed selling pressure at $1.034, the seller could maintain their dominance on this asset. A potential reversal could trigger the next bear cycle within this pattern.
Also Read: Ethereum Dominates ETF Inflows; XRP, BTC, SOL Trail on Jan. 26
