NANO Breaks Out After Bounce at Long-Term Support

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In Brief
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Nano (NANO) has been moving downwards since May 13, but bounced once it reached the $4 horizontal support area.

It has broken out from a descending wedge, potentially beginning a corrective retracement phase.

NANO bounces at long-term support

NANO has been moving downwards since May 13, when it reached a high of $17.70. So far, it has reached a low of $3.10, doing so on July 20.

However, NANO has been moving upwards since the June 22 low and has reclaimed the $4 area. This is important since the $4 area is both a horizontal support area and the 0.786 Fib retracement support level.

Despite the bounce, technical indicators in the weekly time-frame are still bearish. The RSI has fallen below 50, the Stochastic oscillator has made a bearish cross and the MACD is decreasing, approaching negative territory.

NANO Weekly
Chart By TradingView

Future movement

The daily chart provides a more bullish outlook. 

NANO has broken out from a descending wedge, which is considered a bullish pattern. In addition to this, the RSI has moved above 50, the Stochastic oscillator has made a bullish cross and the MACD is moving upwards. 

The main resistances are at $6.86 and $9.26.

NANO wedge
Chart By TradingView

The shorter-term six-hour chart shows that NANO is trading inside an ascending parallel channel. The upward movement is gradual and choppy, thus it is likely to be corrective. 

Furthermore, both the MACD & RSI have generated bearish divergences. Therefore, a breakdown from the channel is likely. 

If one occurs, the main support area would be between $3.68 – $3.86, the 0.5-0.618 Fib retracement support levels.

NANO channel
Chart By TradingView

Wave count

Cryptocurrency trader @Mesawine1 outlined a NANO chart, stating that the token is completing an A-B-C corrective structure.

NANO movement
Source: Twitter

It is possible that NANO has completed a bullish impulse and is now in the B wave of an A-B-C corrective structure (orange). 

If so, the B wave could potentially continue up until the $9.20 resistance area previously outlined. 

While the bottom of the C wave depends on the length of the B one, the $1.20 area is a very strong horizontal support level, which could act as a bottom if it is reached.

NANO Count
Chart By TradingView

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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