Nervos Network (CKB) Reverses Trend With Higher Low, Targeting Recovery From 48% Loss
Key Takeaways
- CKB’s price resisted dropping to another low value following its increase in the last 24 hours.
- The MFI and MACD show bullish signs, indicating that the token’s correction could be over.
- CKB is likely to break the overhead resistance, possibly resulting in a rise toward $0.018.
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CKB, Nervos Network’s native token, is down 48% year-to-date (YTD). However, in recent times, the token has shown signs of a sustained recovery, signaling a reversal from the correction.
The recent price action suggests that selling pressure may be easing, with buyers gradually regaining control. If bullish momentum continues to build, here is how CKB might perform in the short term.
CKB Correction Eases
Between the last quarter of last year and last month, CKB’s price formed lower highs and lower lows. On the 4-hour chart, the altcoin’s value dropped from a swing high of $0.019 to $0.0067.
The image below shows how the token continued to struggle to hold support at the lower lows, declining from $0.11 to $0.$0.005.
However, as of this writing, CKB’s price has established a higher low and currently hovers around $0.0062. The rise to this point suggests that CKB might be nearing the end of its correctional phase while eyeing higher prices.
Furthermore, CCN observed that the Money Flow Index (MFI) seems to support the move. The MFI measures the flow of liquidity into and out of a cryptocurrency within a specific period.
When it rises, the MFI indicates a high level of buying volume. A decrease, on the other hand, indicates otherwise. As of this writing, the MFI has risen above the neutral point, indicating rising buying pressure around CKB.
If sustained, the cryptocurrency’s value could climb higher than $0.0062 in the short term.
CKB Price Analysis: Bullish Crossover Comes In
In addition to the technical setup above, the Moving Average Convergence Divergence (MACD) also agrees with the sentiment that CKB might refrain from hitting lower values.
The MACD is a technical indicator that spots price trends and identifies momentum. When the reading is positive, momentum is bullish. However, when it is negative, momentum is bearish.
An in-depth look at the chart shows that, apart from the MACD reading, the 12-period Exponential Moving Average (EMA) has also climbed past the 26 EMA (orange).
This crossover validated the bullish bias around the Nervos Network token. Should this trend remain the same or elevate, CKB’s price might retest the resistance at $0.012.
If the bullish momentum continues and buying pressure intensifies, the target could be higher. In that case, CKB’s price could climb as high as $0.018.
However, the previous correction might resume if selling pressure outpaces the current buying volume.
If that is true, CKB could decline toward the $0.0049 region.
