NEXO is In An Upward Swing: Market Analysis for October 2, 2021

NEXO

Nexo is ranked 100 according to market capitalization. The coin is alternating with a few others due to fluctuations in their capitalization. But this coin has a lot going for it: the reason for this review that lays emphasis on its price action.

Before we continue, we need to look at the background of the project to determine how suitable and viable it is, since we are aware that the utility of a token is the principal reason for its demand.

What is Nexo?

Nexo is a crypto platform solution that is meant for storage, exchange and lending of digital currencies. The platform supports 20 assets with which the user could exchange 150+ other assets. The supported assets can be used as collaterals for loans which are dispersed in cryptocurrencies.

Nexo has a robust marketing strategy that has resulted in 10 billion assets under management (AUM). Other data that we have on Nexo include jurisdictional support of 200+ countries. Reputable custodial service BitGo and hardwallet maker Ledger are among the partners of this project, which is trusted by 2 million users. 

Other features of the Nexo service are high grade encryption security, custodial insurance of assets, biometric signature security for ID verification, 2FA, ISO compliance and more.  

NEXO Market Data

The Nexo token, NEXO, is presently trading at $1.57. The coin has the following coin metrics (tokenomics)

Maximum Supply: 1 billion tokens

Circulating Supply: 560 million

24 hour trading Volume: $8.8 million

Market Capitalization: $8.7 million

Supporting Exchanges

This crypto lending platform can be traded on several exchanges such as Bitfinex and Huobi. NEXO has a market dominance of 0.04%.

NEXO Market Value

Nexo is one of the few projects that has introduced crypto lending backed by accepted digital assets such as Bitcoin, Ethereum and others. The essence is to bring to the digital asset world traditional finance lending that was absent in the crypto space prior to the launch of the service in 2018. 

Nexo loans are instant and backed by a smart contract built on the Ethereum network and backed by an Oracle program. Owners of the NEXO token can also deposit them to be used in lending, enabling the owners to earn a profit from Nexo.

NEXO Market Trend And Price Analysis

The One-Day chart as seen on October 2 shows NEXO forming a head and shoulder pattern, so we took a look at the 7-Day and One-Month charts. The latter shows that the coin is in a downtrend, but this chart is not enough for us to understand what is happening with NEXO. So we shall do an in depth analysis to know the trend and price action.

10-Day, 20-Day and 50-Day Moving Averages for NEXO

The 10-Day Moving Average shows that NEXO is in an uptrend, while the 20-Day MA shows a reversal from a downtrend, but the 50-Day moving average actually shows a downtrend. Since this is a reactive indicator, we can conclude based on the short-term period that the price of NEXO is in an uptrend. However, we need to understand the strength of this trend.

nexo

NEXO Price Action Based On The RSI Indicator 

The RSI indicator seen from the 4H chart for NEXO shows that the coin is in the overbought region. This is an indication that we are expecting a correction in which the price will consolidate for higher value. The chart shows an RSI of 72, which is in the strongly overbought region. We are witnessing a 12-day price movement for NEXO in the overbought region. 

The MACD indicator seen at the bottom of the chart further confirms the strength and direction of the trend. What we see is NEXO forming a higher low in the $1.5512 region. 

We will likely see higher values for NEXO in the coming days of the first week of October. What is certain is that the $0.16217 resistance will be bridged in the coming hours.

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.