Gnosis (GNO) Price Approaches Key Support Zone — Retest Could Be Next

Key Takeaways

• Testing strong horizontal and Fibonacci support.
• Descending resistance trendline limiting upside potential.
• Breakout could target 0.5 Fibonacci retracement at $265.

Gnosis (GNO) tests a critical support zone at the 0.786 Fibonacci retracement level after a prolonged corrective phase.

A descending trendline has acted as resistance, limiting bullish breakouts.

GNO is approaching the end of a corrective structure with a potential for reversal. 

GNO Price Analysis

The daily chart of GNO reveals a prolonged downtrend after peaking at $445 on Mar. 11. 2024. The correction has formed a symmetrical triangle, with the price now testing the lower boundary of a triangle formation. 

The 0.786 Fibonacci retracement level at approximately $160 has been a significant historical support zone, previously leading to strong rebounds.

The daily chart’s Relative Strength Index (RSI) shows oversold conditions, indicating that the selling momentum may be exhausted.

The presence of a confluence zone, formed by both the horizontal support area and the lower triangle boundary, makes this a crucial level for potential trend reversal.

If the price confirms support at this level, a breakout from the descending resistance line could lead to a recovery toward $222 (0.618 Fibonacci retracement) and $265 (0.5 Fibonacci retracement).

A failure to hold above $160 could invalidate the bullish scenario, opening the door for further downside toward the $85 level (1.0 Fibonacci retracement), marking the last major support from the previous cycle.

GNO Price Prediction

The 4-hour chart provides further clarity on GNO’s potential short-term movements.

The price action suggests that GNO is forming a complex ABCDE corrective pattern, with wave wave (C)  nearing completion.

A breakout from this structure could lead to a strong, impulsive move upward.

The immediate resistance to watch is at $222 (0.618 Fibonacci retracement). A successful breakout above this level could push GNO toward the wave (D) target at around $240.

If bullish momentum sustains, the next major resistance is $265 (0.5 Fibonacci retracement), a historically relevant price level.

Alternatively, a rejection could lead to further consolidation within the triangle, with the price potentially revisiting the $160-$150 region.

If selling pressure increases, GNO could break below the structure, with the next major support sitting at $85.

The RSI on the 4-hour chart is recovering from oversold conditions, which may signal the beginning of a bullish move.

Confirmation of volume expansion alongside a breakout would strengthen the case for a short-term uptrend.

Key Levels to Watch

• Immediate Resistance: $222 (0.618 Fibonacci retracement).
• Key Resistance: $240 (descending trendline resistance).
• Major Resistance: $265 (0.5 Fibonacci retracement).
• Immediate Support: $159 (0.786 Fibonacci retracement).
• Critical Support: $85 (1.0 Fibonacci retracement).