Nexo (NEXO) price analysis: A correction or end of the rally?

The cryptocurrency market continues to be under pressure, the price of Bitcoin went below $56000 today, and the risk of further declines is not over yet. Nexo (NEXO) is also losing its value; in less than several hours, this cryptocurrency price has weakened from $3.03 to $2.59, and the current price stands around $2.65.

Fundamental analysis: Liquidity has risen dramatically since the beginning of 2021

Nexo is a platform for instant crypto loans on which users can deposit supported crypto tokens into their Nexo wallet. This platform was launched in April 2018 and allows its users to hold onto their crypto assets while securing access to “live” cash.

Nexo supports more than 20 cryptocurrencies, while the NEXO token is used as a source of discounts and other benefits for the platform’s users. Nexo enjoys support from a fintech group Credissimo with millions of customers, and according to analysts, this project has a bright future.

Nexo (NEXO) liquidity has risen dramatically since the beginning of 2021, and the price of this cryptocurrency advanced above $3 resistance this April. The cryptocurrency market is losing its value this Wednesday, the price of Nexo can weaken even more in the upcoming days, and maybe it is not the best moment to buy this cryptocurrency.

Some analysts warn that Bitcoin could retest the $20,000 support level if it gets hit by risk-off sentiment. If this happens, all other cryptocurrencies could be at much lower price levels that can be good entry points for long-term investors.

“When we get a risk-off moment, we could be seeing Bitcoin pull back to somewhere between $20,000 and $30,000. Bitcoin has been caught up in a “speculative bubble” like Gamestop and other Yolo stocks,” said Scott Minerd from Guggenheim Partners.

Technical analysis: $2 represents a strong support level

Data source: tradingview.com

NEXO has extended its correction from the recent highs above $3, but if the price jumps again above $3 resistance, it would be a signal to buy NEXO.

The next price target could be around $3.3 or even $3.5; still, if the price falls below $2, it would be a firm “sell” signal and probably a trend reversal sign.

Summary

Nexo’s (NEXO) price has extended its correction from the record highs, but for now, there is no risk of the “bear” market. The cryptocurrency market continues to be under pressure, the price of Bitcoin went below $56000 today, and the risk of further declines is not over yet. Some analysts warn that Bitcoin could retest the $20,000 support level, and if this happens, all other cryptocurrencies could be at a much lower price level.

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