NANO is showing bullish signs after breaking above the 98-day resistance line
NANO is showing signs of strength as it bounced off the long-term support area and then broke above the descending resistance line.
Important price zone
NANO has been down since hitting an all-time high of $17 on May 13th. The bearish move led as low as $1.91 (green icon) on Jan 24.
The low serves to confirm the $2 zone as support. This area acted as resistance in May 2019 and now appears to have turned back into support.
From an all-time high, NANO is down 86.71%.
The breakthrough takes place
The daily chart is showing some signs of strength.
First, a very significant bullish divergence has formed on the MACD. Such events are often followed by bullish trend reversals.
Second, NANO broke the descending resistance line that has been in place since October 30th.
The main resistance area is located at $4. It is formed by the 0.382 Fib retracement level and coincides with another descending resistance line (dashed line) that has been in place since September 6th.
Trader @ewfib tweeted a chart of NANO and said the token may have completed a correction.
The source: Twitter
Measured from the March 2020 low, NANO appears to have completed a five-wave bull cycle (white) that has led to an all-time high.
Since then, the price has corrected within an ABC corrective structure.
However, wave C is only 0.382 times as long as wave A, which is unusually short. However, this can be explained by the long upper wick, which reached an all-time high.
However, the extremely short length of wave C makes the correction incomplete. This also aligns with the price action as NANO has yet to break above the second descending resistance line and the $4 resistance area.
So until this is successful, the adjustment cannot be considered complete.
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.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews