Nano’s Price Correction Could Be Coming to an End [Premium Analysis]

So far, it has been a tale of two months for NANO — which increased by 35 percent in November but has been correcting for the entirety of December. On December 23, NANO announced that the cryptocurrency is available on the cyclebits payments platform. NANO hopefuls suggest that this could give the cryptocurrency a much-needed price boost.

$NANO is now available on the @Cycle_bit #cryptocurrency payments platform. The integration sees Nano added to a range of #adoption focused services, including #PoS devices, making it easier than ever to use instant and fee-less #digitalmoney. https://t.co/72isxSn20R

— Nano (@nano) December 23, 2019

Investor and trader @Cryptodonalt stated that the NANO price has finished its rally. Even though it is decreasing towards the range low, he will wait for a breakdown and retest in order to initiate a position — which will most likely be short.

$NANO update:

Looks like I was correct.
Loss of momentum is pretty much the worst that can happen to an altcoin.

I'm not buying the range low this time, it's spent too much time there already for my liking.
If anything I'll wait for a break and then retest to position myself. pic.twitter.com/VmhBXY9P7y

— DonAlt (@CryptoDonAlt) December 22, 2019

Let’s take a closer look at the price movement and determine where the NANO price will go next.

Previous NANO Breakdown

Since October 2018, the NANO price had been trading above the 2300 satoshi support area, from where it began several upward moves. However, the price finally broke down below this support area in May 2019.

It created 12 bearish weekly candlesticks in a row, decreasing by 73.5 percent in a span of 77 days. Afterward, it created a strong support area at 850 satoshis, where it has been trading since.

Looking closer at this movement, the first minor resistance area is found at 1400 satoshis. The NANO price tried to reach it twice on November 14 and 31 but made a double top and decreased.

The weekly RSI has been generating bullish divergence since July. Its upward trend-line is still intact, but very close to being broken. If it is, the NANO price might decrease below this support area, create an all-time low and enter price discovery. If not, we are likely to see another upward bounce.

Let’s look at lower time-frames and see where the price will go next.

Ascending Support Line

Since reaching an all-time low of 823 satoshis on September 6, the NANO price has been increasing and following an ascending support line. While the slope of the line is difficult to draw precisely because of the presence of several wicks, the NANO price seems very close to bouncing on this line.

Previously, the price broke out above the 1050 satoshi resistance area on November 6 and traded in a range with resistance at 1200 satoshis until December 15. Measuring the height of the range and projecting it to the breakdown point leads us to the current price.

Finally, the short-term chart reveals that NANO is following a descending support line that coincides with the long-term support line and has generated bullish divergence in both the RSI and the MACD.

Combined with the previous analysis, this makes us believe that the NANO price will bounce at the support line and head towards the resistance area at 1050 satoshis.

To conclude, the correction for the NANO price seems to be approaching its end. We expect the price to find support and initiate an upward move towards the outlined resistance area.