After a few bearish months, NANO is trading in a critical demand zone. The bears are creating trouble for the bulls by pushing the price down since February of this year. The bulls started to weaken after a failed attempt to sustain above the $1 mark.
- NANO/USD is up 0.97% today
- NANO/USD is forming a falling wedge that could be a signal for a potential reversal
NANO/USD is trading at $0.6687 after a brief recovery from its recent low at $0.6129. The current price action shows the dominance of bears as the price keeps falling. The price is now getting consolidated which can be interpreted as a pullback from its recent swing low. Price is under selling pressure as the bulls lost the daily support level of $0.7251.
The Daily chart shows the formation of a falling wedge
The daily chart shows a pattern formation that looks like a falling wedge. This pattern has a bullish bias as they tend to break towards the upside. This can revive hopes for the bulls in the short term. A breakout can initiate a change of sentiments. In such a case, the price can start a leg towards the daily resistance of $1 which will be a 40% ride. Investors must closely observe the trendline along with the resistance level of $0.7251 and wait for a bullish candle to close above these levels. Along the way, the bulls can expect a speedbreaker at $0.8321 which is a resistance level.
It’s important to consider that the market is in a downtrend as it is below the daily 200 EMA and there is a high probability of downside. The bears are present at $0.7251 which can result in a rejection. This rejection will induce panic, and the price has the potential to plunge down almost 15% before finding support at $0.5631. This is a very important support level on the daily chart.
The 4H chart shows short-term consolidation.
On the 4H Chart, the price appears to be consolidating. This can be characterized by the choppy movements of the candles. The market is taking a pause from volatility in the short term. The low volume represents the absence of major buyers which can be due to doubt and fear. The technical indicators suggest that the market is weak and the sellers can bring down the price any moment.
Bulls are patiently waiting for the breakout of the descending channel. This event could give them the confidence to enter the market and change its course. At present, the market structure is hinting at a brief surge towards the 4H, 200 EMA which is a 5% move from here. Investors should remain cautious as the price is in a downtrend and must stick to strict management. The market is also missing liquidity and this is not a good sign for the bulls.
RSI
The RSI indicator is currently at 56.33, and the RSI has crossed the MA line towards the upside. This is a sign of a bullish to sideways market condition.
MACD
The MACD indicator made a bullish crossover. It is barely crossed above the 0 lines, but the histogram is representing a low momentum. This means the market is missing strength.
200 EMA
As observed, on the 4hr, the price is trading below the 200 EMA(exponential moving average) which acts as a significant resistance. This is a clear indication of a downtrend where the sellers are in control and for a trend reversal, the price must break and trade above the 200 EMA.
Technical levels
Support Levels: $0.6384 – Support 1
$0.5631 – Support 2
Current Price: $0.6687
Resistance Levels: $0.7251 – Resistance 1
$0.8321 – Resistance 2
Conclusion
The digital asset NANO has fallen under the bear grip, and the bulls are struggling to escape from it. The price is trading at an important demand zone, and a breakdown can force the price to stall further. Meanwhile, the bulls are looking at the falling wedge as a promising opportunity. This can kick start a bull run and revive the hope for the investors. It’s mandatory to remember that the market is in a selling mood and the investors must remain careful.
