The cryptocurrency market remains under pressure, the price of Bitcoin dropped below $ 56,000 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 is around $ 2.65.
Fundamental analysis: Liquidity has increased dramatically since early 2021
Nexo is a platform for instant crypto loans where users can deposit compatible crypto tokens in their Nexo wallet. This platform was launched in April 2018 and allows its users to keep their crypto assets while ensuring access to ‘live’ cash.
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Nexo supports more than 20 cryptocurrencies, while the NEXO token is used as a source of discounts and other benefits for users of the platform. Nexo is supported by a financial technology group Credissimo with millions of clients and, according to analysts, this project has a bright future.
Nexo (NEXO) liquidity has increased dramatically since early 2021, and the price of this cryptocurrency advanced above the $ 3 resistance in April. The cryptocurrency market is losing value this Wednesday, the price of Nexo may weaken even more in the coming days, and it may not be the best time to buy this cryptocurrency.
Some analysts are warning that Bitcoin could retest the $ 20,000 support level if affected by risk sentiment. If this happens, all other cryptocurrencies could have much lower price levels which can be good entry points for long-term investors.
“When we have a risk-free moment, we could be seeing Bitcoin retreat to somewhere between $ 20,000 and $ 30,000. Bitcoin has been caught in a “speculative bubble” like Gamestop and other Yolo stocks, “said Scott Minerd of Guggenheim Partners.
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Technical Analysis: $ 2 Represents Strong Support Level
Data source: tradingview.com
NEXO has extended its correction from the recent highs above $ 3, but if the price jumps back above the $ 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 signal.
Nexo (NEXO) price has extended its correction from all-time highs, but for now, there is no risk of a ‘bearish’ market. The cryptocurrency market remains under pressure, the price of Bitcoin dropped below $ 56,000 today, and the risk of further declines is not over yet. Some analysts are warning that Bitcoin could retest the $ 20,000 support level, and if this happens, all other cryptocurrencies could be priced much lower.