NANO Struggles to Reach $1 After Drop

Share Article
In Brief
The Trust Project is an international consortium of news organizations building standards of transparency.

The Nano (NANO) price has been increasing since it reached a low on Sept. 23.

Sponsored





Sponsored

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.

Sponsored



Sponsored

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.

NANO Chart By TradingView

Ongoing Retracement

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.

NANO Chart By TradingView

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.

NANO Chart By TradingView

Wave Count

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.

Source: Twitter

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.

NANO Chart By TradingView

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.

For BeInCrypto’s Bitcoin analysis, click here!

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.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

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.

Follow Author

Don’t get FUD! Win 1 ETH when you deposit $100 with Bybit!      

Join

FOMO no more. Win 1 BTC when you trade $100 on Bybit!      

Join

Bybit New Token Listing: Win In-Game NFTs and SIDUS Tokens.      

Win Now!