NANO breaks out after bouncing off long-term support

Nano (NANO) has been down since May 13, however rebounded when it hit the $ 4 horizontal support space.

It broke out over a descending wedge, presumably initiating an upward correction.

NANO bounces off long-term support

NANO has been down since May thirteenth when it peaked at $ 17.70. It has solely hit $ 3.10 up to now, on July twentieth.

However, for the reason that June twenty second low, NANO has risen to recapture the $ 4 zone, which is necessary because the $ 4 zone is each horizontal support and FIb 0.786 retracement support.

Despite the rebound, the technical indicators of the weekly timeframe are nonetheless bearish. The RSI has fallen under 50, the stochastic oscillator has created a bearish cross and the MACD is falling and approaching the unfavorable zone.

Weekly NANO / USDT Chart | Source: TradingView

Future motion

The every day chart presents a extra bullish outlook.

NANO breaks a descending wedge that’s believed to be a bullish sample. In addition, the RSI has moved above 50, the stochastic oscillator has created a bullish cross and the MACD is shifting up.

The important resistance ranges are $ 6.86 and $ 9.26.

Daily NANO / USDT Chart | Source: TradingView

The shorter-term six-hour chart exhibits that NANO is trading on an ascending parallel channel. The upward motion is gradual and undulating so it’s more likely to be corrected.

In addition, each the MACD and RSI create bearish divergences. Therefore, the price may fall under the channel.

In this case, the principle support space is between $ 3.68 and $ 3.86, 0.5-0.618 fib retracement support ranges.

6-hour NANO / USDT chart | Source: TradingView

Count waves

Trader @ Mesawine1 sketched the NANO chart, indicating that the token completes an ABC correction construction.

The supply: Twitter

NANO might have had a bullish impulse and is now in wave B of the ABC correction (orange).

If so, the price can proceed to climb to the $ 9.20 resistance space described above to finish Wave B.

While the underside of wave C is dependent upon the size of wave B, the USD 1.20 space may be very sturdy horizontal support that may act as the underside if price strikes down there.

NANO / USDT 2-day chart | Source: TradingView

Disclaimer: This article is for informational functions solely, not funding recommendation. Investors ought to analysis rigorously earlier than making a call. We will not be liable for your funding selections.

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