Nano price tumbled recently and tested the $6.00 support zone against the US dollar. NANO/USD is currently recovering and is facing a major hurdle near $$8.00-8.50.
Key Talking Points
- Nano price started an upside correction after trading towards the $6.00 support against the US dollar.
- There is a major bearish trend line forming with resistance at $8.50 on the 1-month chart of the NANO/USD pair.
- The pair must trade above the mentioned $8.50 resistance zone to move into a positive zone.
Nano Price Forecast
There were continuous declines in Nano price from well above the $12.00 level against the US dollar. The NANO/USD pair declined heavily and traded below the $10.00 and $8.00 support levels.
It traded close to the $6.00 support level and formed a low near $6.10. Later, an upside correction was initiated and the price was able to move above the 23.6% Fib retracement level of the last drop from the $12.40 swing high to $6.10 low.
However, the price is facing a lot of hurdles on the upside near $8.00-8.50. There is also a major bearish trend line forming with resistance at $8.50 on the 1-month chart of the NANO/USD pair.
The trend line resistance prevented upsides on many occasions earlier and is now acting as a hurdle around $8.50. A break and close above the trend line resistance at $8.50 is must if the price has to move back into a bullish zone.
The next hurdle is near the 50% Fib retracement level of the last drop from the $12.40 swing high to $6.10 low. In the medium term, the price has to settle above $10.00 to remain in a positive bias.
If the price fails to settle above the $8.50 resistance, there can be a downside reaction towards $7.00. Below the mentioned $7.00, the price could retest the $6.50 support.
Overall, the current price action is slightly bullish, but a break above $8.50 is must, else there is a risk of a downside break.
Trade safe traders and do not overtrade!