- The NEXO price recovery is poised for a potential 22% surge before challenge, the key resistance of wedge pattern.
- Nexo’s volume bubble map visualization highlights declining intensity in trading clusters.
- The coin price trading below the 200-day exponential moving average indicates the broader trend is bearish.
NEXO, the native utility cryptocurrency of Nexo platform, recorded a 0.44% increase on April 22nd to currently exchange hands at $0.9. The initial buying pressure came with broader market recovery as the geopolitical tension eased when president Donald Trump announced an extended ceasefire between the U.S and Iran. However, a deeper volume analysis of NEXO price shows that the prevailing market correction is gradually losing its momentum, which could trigger a potential rebound.
Nexo Signals Cooling Phase as Sell Pressure Fades
A recent analysis of spot trading activity for Nexo reveals a shifting landscape that may interest market observers. With a bubble map to monitor the changes in volume, the evidence presents a shift into a so-called cooling phase.
This is an indication that aggressive selling pressure that characterized the recent declining price trends is starting to ease off meaning that there is a possibility of exhaustion among the sellers.
This particular volume profile has been seen twice in the past few years, and it has historically served as an indicator of major price changes. A similar cooling signal was observed in May 2023, which was followed by a significant upward rise to the 1.50 level.
The second instance was in late 2023 that was succeeded by an increase of 65 percent in price. As of now, Nexo NEXO-2.04% is displaying the same traits as it trades in a corrective trend.
Although the trend resembles that of past arrangements that resulted in rallies, recent times are characterized by a wider market environment and situation unlike the past. Analysts point out that the waning sell side momentum is a significant phenomenon, but the trend has not shown conclusive reversal.
The actual change movement would probably need an evident inflow of purchasing quantity and a cycle-long break in the price movement to confirm the change of cooling phase into a new stage of accumulation.
NEXO Price Hints Steady Rally Within Wedge Pattern
Over the past ten weeks, the NEXO price witnessed a bullish upswing from $0.61 to current trading of $0.914, registering a gain of 49%. Interestingly, this rebound emerged as a fresh bull cycle within the formation of a falling wedge pattern in daily charts.
Since December 2023, the Nexo price has resonated within the two converging trendlines which act as dynamic resistance and support for crypto traders. Typically, the narrowing range suggests weakening bearish momentum in price which leads to strong recovery and major breakout.
The upswing also managed to reclaim 20-and-50 EMAs slope reinforcing the bullish narrative in the market. With sustained buying, the Nexo price could rally 27% to challenge the wedge pattern resistance at $1.15. A potential breakout from the wedge pattern would be the key signals for a fresh bull rally.
On the contrary, if sellers continued to defend the wedge pattern resistance at $1.15, the NEXO price could enter new correction trend,
