NANO is looking for support after a crash

Nano (NANO) has fallen below an ascending support line that has been in place since July 20th.

It tries to hold above the USD 4.92 support area and the 2-4 trendline. Price has to do this in order for the upward trend to continue.

NANO breaks

NANO has risen along with the ascending support line since July 20th. This resulted in a high of $ 7.87 on August 22nd.

However, since then, NANO has declined. It hit a lower high on September 6 and broke below the rising support line the next day.

It is currently trading near the 0.618 fib retracement support at $ 4.90.

If it breaks the next support will be found at $ 4.15. That target is the 0.786 fib retracement support and the horizontal support area.

The technical indicators are falling and support the continuation of the downtrend. The MACD is about to break into negative territory and the RSI is below 50.

Daily NANO / USDT Chart | Source: TradingView

Short term movement

The two-hour chart is more bullish, indicating that the price is likely to rebound.

Both the RSI and the MACD produce bullish divergences, a sign that often precedes upward moves.

However, there is strong resistance near USD 5.30 in the form of horizontal resistance and the former short-term ascending support line.

Therefore, the short-term trend until this zone recovers cannot be considered bullish.

NANO / USDT 2-hour chart | Source: TradingView

Count waves

Trader @ Mesawine1 sketched the NANO chart and said it could be in the fifth and final wave of a bullish impulse.

The source: Twitter

The most likely wavenumber suggests that NANO is in the fifth wave of a bullish impulse initiated in March 2020.

It is possible that Correction 4 ended on July 20th at the low of $ 3.10 (green circle). In this case, the potential target for the peak of the upward move is between $ 25.80 and $ 26.99. The target is found using the 1.61 length of waves 1-3 (orange) and the external fib retracement level of 1.61 of wave 4 (black).

However, it barely holds above the channel connected by the lows of waves 2-4. Any interruption below this will invalidate this potential amount.

Weekly NANO / USDT Chart | Source: TradingView

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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