Date: Tue, March 18, 2025 | 04:14 PM GMT
The crypto market has faced a noticeable downtrend since the late 2024 rallies, with most major altcoins undergoing sharp corrections. Nexo (NEXO) hasn’t been spared either—it has declined by over 23% in the last 90 days, following the formation of a bearish pattern on its chart.
However, despite the broader weakness, the token has managed to hold a key support level recently and is currently trading at around $1.09, showing some signs of stabilization after posting slight weekly gains.
Double Top Pattern Setup
NEXO recently formed a bearish double top pattern near the $1.55–$1.60 zone, followed by a breakdown below the neckline at $1.03. This bearish formation played out with the price dropping lower, eventually testing a key support area between $0.89 and $1.00—marked in gray on the chart. Interestingly, this support zone aligns closely with the 200-day moving average (200 DMA), currently hovering near the $1.00 mark, which further reinforces its importance.
As long as NEXO holds this critical gray zone support along with the 200-day MA, there is still a good chance for a rebound. A potential bounce from this zone could signal the beginning of a recovery, especially if the price manages to flip the 25-day moving average—which stands as the next key resistance—into support.
The MACD indicator, although still in negative territory, is beginning to flatten out, hinting at a possible slowdown in bearish momentum. If a bullish crossover occurs in the coming days, it could further support the case for a reversal in trend and bring in renewed buying interest.
However, if NEXO fails to defend this support zone, the rebound scenario may get invalidated. In that case, the token could face deeper downside pressure, with the next support levels seen around $0.80 and $0.70 respectively.
For now, all eyes are on whether NEXO can sustain above this crucial support zone. If it does, a fresh upward move might not be far off.
Final Thoughts
While technical indicators offer hope for a rebound, the market remains sensitive to broader sentiment and macro developments. Traders and investors should watch closely for a confirmation signal in price action and momentum before taking decisive positions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing in cryptocurrencies.