The NANO price has broken out above a significant area of resistance and flipped the level into support.
- The NANO price has broken out above a long-term descending resistance line.
- It successfully completed a double bottom.
- There is support at 8,500 satoshis.
- There is resistance at 10,750 satoshis.
- The price is trading inside a short-term ascending channel.
Well-known crypto trader @CryptoNTez tweeted a NANO price chart stating that it has broken out above both a significant resistance area and moving average (MA). In the future, he expects this level to act as support and the price to continue moving to the upside.
update on $NANO,
Reached target at ~9500 sats but couldn't hodl it and retrace back to mid level..
EMA50 acting as support
— Nico (@CryptoNTez) February 4, 2020
NANO Long-Term Breakout
The NANO price was following a descending resistance line for 518 days and broke out above it on Jan 22.
The breakout was preceded by a very significant bullish divergence in the weekly RSI, which has yet to move above 50.
This movement makes it appear that NANO has reversed and will move upwards in the near future. If it were to move all the way to the top of the resistance line at 53,000 satoshis, it would mark a 540% increase from current price levels.
On Jan 14 and 29, the NANO price made a double bottom near 7,500 satoshis. Besides being a bullish reversal pattern, this double bottom was combined with bullish divergence in the daily RSI
Afterward, the price moved above the 8,500 satoshi area, which is the resistance outlined in the tweet. During this time, the RSI moved above 50, confirming the upward trend.
Another bullish indication is the fact the the price moved above the 200-day MA, something it has not done since April 2019. In addition, this MA rejected the price in December of the same year, prior to it falling to an all-time low.
The next resistance area is found at 10,750 satoshis.
In the short-term, the NANO price is trading inside an ascending channel. If the price were to continue trading inside this channel, it would reach the aforementioned resistance area of 10,750 satoshis by Feb 10.
The 50 and 200-period MAs have made a bullish cross and the price is trading above both. This supports the proposed price increase toward the upper resistance area.
A breakdown below the support line of the channel and 50-period MA would invalidate this possibility and likely cause the price to drop to the support level of 8,500 satoshis once more.
To conclude, the NANO price has broken out above a long-term descending resistance line, indicating that it has reversed its bearish trend. Its long-term prospects appear bullish and the price should soon reach the resistance area outlined above.