The Nano (NANO) price has been increasing since it reached a low on Sept. 23.
Nevertheless, the price has failed to move above an important resistance level, and the trend is considered bearish until it does so.
Reclaim of Support
The NANO price has been declining since Aug. 22, when the price reached a high of $1.45. The fall has been swift, and on Sept. 23, the NANO price reached a low of $0.66, just below the 0.618 Fib level of the entire upward move.
However, the price quickly reclaimed this level and created a long lower wick in order to re-test it once more on Oct. 3. Conversely, the closest resistance area is found at $0.95.
Technical indicators are neutral. While the MACD and Stochastic Oscillator are increasing, the latter having already made a bullish cross, the former has not crossed into positive territory yet. Furthermore, the RSI has formed a considerable hidden bearish divergence and is still below 50.
Therefore, readings from the daily time-frame are not sufficient to determine where the price will head towards next.
A closer look reveals that the price is also following a short-term descending resistance line. Furthermore, measuring from the entire downward move, the price has yet to even move above the 0.382 Fib level, the lowest retracement level, which also coincides with the previously mentioned $0.95 resistance area.
Until the price successfully reclaims this resistance level, the price action is more likely to be a retracement than the beginning of a new upward move.
The next resistance area is found at $1.15.
Cryptocurrency trader @TheTradingHubb outlined a NANO chart that shows the price increasing all the way to $0.95, which coincidentally is the main resistance area that we have outlined.
The wave count since the Aug. 22 high shows a completed five-wave bearish impulse (shown in black below), which ended with the Sept 23. low. Since then, the price has begun an upward move, which until now looks like an A-B-C correction.
A rally in which waves A:C have a 1:1 ratio would take the price to $0.97, validating both the resistance area and the 0.382 Fib level of the entire decline.
While a correction can retrace more, possibly going to $1.15 (the 0.618 Fib from the previous section), the price move would make it more likely that it ends near $0.97.
If the price reclaims this area and turns it to support afterward, it’s possible that this is the beginning of a new upward trend rather than just a correction.
However, another rejection from the $0.95 area seems the most likely scenario.
To conclude, the NANO price should reach the $0.95 area once more. However, a breakout above seems unlikely if the current move is a correction.
Disclaimer: Cryptocurrency trading carries a high level of risk, and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.