The cryptocurrency sector experienced a notable rebound as NEXO, the native ERC-20 token of the Nexo platform, recorded a 1.92% surge on Tuesday, climbing to $0.958. This uptick aligns with the broader market’s relief rally, driven by a declining U.S. dollar. But can NEXO sustain its rally and reclaim the $1 mark?
Whale Accumulation Signals Confidence
Recent on-chain data from CryptoQuant reveals heightened accumulation of NEXO by crypto whales, potentially signaling confidence in the token’s long-term value. Following a dip below $1, whales resumed their accumulation phase, seeking optimal entry points. Historically, such activity has preceded major rallies in NEXO’s price.
In mid-January, NEXO traded between $0.90 and $1.00, with an ascending triangle pattern forming—a signal of potential bullish breakout. Additionally, the coin’s collateral accumulation index hit $1.52 million, suggesting continued institutional and whale interest in using NEXO for loans or collateral rather than selling outright. This trend has reduced market sell pressure and created a foundation for potential growth.
Technical Analysis: Key Levels to Watch
Over the past 48 hours, NEXO rose from $0.892 to $0.9658, marking an 8% increase that pushed its market cap to $616 million. Notably, buyers have reclaimed the 20-and-50-day Exponential Moving Averages (EMA), hinting at a possible trend reversal.
The Relative Strength Index (RSI) currently sits at 50%, indicating a balanced market, but sustained buying could push NEXO to challenge its first key resistance at $1.034. A breakout above this level could trigger further gains, with potential targets of $1.15 and $1.25. On the other hand, a reversal at $1.034 may lead to continued consolidation or the next bearish cycle within the current pattern.
NEXO’s Broader Outlook
NEXO’s rebound aligns with positive market sentiment fueled by Bitcoin’s stability above $85,000 and the weakening U.S. dollar. However, broader adoption of the Nexo platform and its token remains crucial for sustained growth.
For those looking to utilize or accumulate NEXO, the Nexo platform offers crypto lending and earning opportunities. Interested in maximizing earnings on your crypto? Explore the Nexo Crypto Wallet, which supports a wide range of assets and competitive yields.
As always, investors should carefully monitor market trends and whale activity to make informed decisions. The cryptocurrency market remains volatile, and proper risk management is essential to navigating potential swings.
