Despite a sharp bitcoin (BTC) drop, nano (NANO) has increased by more than 40%, in the last 24 hours.
NANO is attempting to reclaim the $13 area and validate it as support. This would confirm that the trend is bullish and the token is heading for new highs.
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NANO reached a new all-time high of $17.70, on May 13. However, it immediately decreased, and has created a long upper wick of 26%, at the time of writing.
Currently, it is trading just inside the $13 area, which acted as the daily closing price of the previous all-time high, on April 17. Whether the area gets reclaimed, hence validated as support, or the price gets rejected will be an important determinant of whether the trend is bullish or bearish.
Technical indicators in the daily time-frame are bullish. The Stochastic Oscillator has made a bullish cross (green). The RSI is close to crossing above 70 and the MACD is increasing.
Therefore, it is more likely that NANO validates the $13 area as support and continues to move upwards.
If so, the next resistance areas would be located at $19.45 and $27.64, respectively. They are found by using an external Fib retracement on the most recent drop.
Short-term movement
A look at the short-term movement shows that NANO has broken out from a descending resistance line, further supporting the hypothesis that the trend is bullish.
In addition, the previously outlined horizontal support area coincides with the 0.5 Fib retracement support level, increasing its significance.
Therefore, it is probable that the token finds support near this level before continuing upwards.
To conclude, whether NANO reclaims or gets rejected by the $13 level, will be an important determinant of the direction of the future trend. The price action and indicator readings suggest that it will probably be successful in doing so.
For BeInCrypto’s latest bitcoin (BTC) analysis, click here.
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