Can NEXO Reach a New Yearly High? | Credit: Hameem Sarwar
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Key Takeaways
Nexo broke out from a descending parallel channel.
The price has nearly reached a new yearly high.
Will the NEXO increase take the price above $2?
The NEXO price has created four successive bullish weekly candlesticks, breaking from a long-term corrective pattern. This took the price within striking distance of its yearly high of $1.59.
Will NEXO reach it, and how long will it continue increasing if so? Let’s find out.
The NEXO price had fallen inside a descending parallel channel since March, culminating with a low of $0.83 in August. The price has gradually increased since, accelerating its upward movement in November.
After four successive bullish weekly candlesticks, NEXO broke out from the channel, which had existed for over 250 days at the time. NEXO is approaching its yearly high of $1.58 and is currently trading in the final resistance area of $2.50.
A breakout above it could take the NEXO price to the next resistance at $2.50, 75% above the current price.
Technical indicators support the upward movement. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing and above their bullish thresholds at 50 and 0, respectively.
So, the weekly time frame chart suggests NEXO will break out above $1.50 and increase toward the next resistance at $2.50.
NEXO Yearly High
The weekly time frame wave count shows that NEXO has completed an A-B-C correction (black) since the yearly high. The correction was contained inside the parallel channel, so the breakout from it means the correction is over.
It is unclear if this correction was part of a longer-term wave two or wave B (white). Since the drop after the all-time high is a five-wave decrease, it is more likely that the ongoing increase is an A-B-C structure.
If wave C has the same length as wave A, the price will reach a high of $2.55. This will take it to a long-term horizontal resistance area and the resistance trend line of an ascending parallel channel that has existed since the upward movement started.
Judging by the length of the previous decline, the high can be reached in April. If NEXO breaks out above $2.55, it will mean that the increase is impulsive, and the price will reach new highs.
So, the reaction once NEXO gets to $2.55 will be key in determining the future trend’s direction.
Bullish NEXO Trend
The NEXO price has broken out from a long-term corrective pattern, indicating the previous downward movement is over. According to the wave count, the increase will likely continue toward at least $2.55.
The reaction once the price reaches that level will be key in determining whether NEXO will reach a new all-time high or not.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
