Dear Hivers,
Today, I'd like to share with you Technical analysis of one of my favorite coins NANO.
As I mentioned last time when covering Viacoin, this analysis won't have any Fundamental aspects to it, even though I'm very bullish on NANO on this aspect as well (Maybe I can write another post about it next time).
First of all, I wanna specify that this is a long term scenario, which means this idea is supposed to be played out on a longer time frame as specified on charts. While it's possible that trade executes itself sooner than expected, this is not primary cause of a trade.
NANO entered a very strong bear trend after January 2018, with rare price rises that were quickly rejected on the macro scale. NANO kept making lower local highs as well as lower lows, which indicated bearish trend.
Right now, NANO has reached a lowest price point in terms of BTC in the past 2.5 years with the current price of 0.0000640 BTC.
Today,I'll share why I think it's good to start accumulating this coin and why I believe we are starting to see some signs of potential reversal.
Let's check out the 1W candles in order to see the whole picture more clearly:
https://charts.cointrader.pro/snapshot/ATz5i
NANO reached one of it's crucial support levels today, but it still has more place to fall down. What is most important to notice that volume is very strong, but it's hard to make distinction if there is more selling done than buying unless we look more closely.
Looking at the RSI we can actually see that price is falling, but the RSI is slowly rising indicating Bullish divergence. This is a very strong reversal indicator. Also, a fairly big descending wedge can be shown which is also a bullish sign.
Supports are marked with blue line, while main resistances and potential targets are marked with red line.
Here's another view of this but zoomed in on 3D candles, where the falling wedge can be seen more clearly:
https://charts.cointrader.pro/snapshot/RHSTc
Two potential targets that I see are 0.0001 BTC and 0.0017 BTC.
Despite all of this, I still think there are two possible scenarios which can happen in the short term, we can call them Bearish and Bullish scenarios.
Short term Bearish scenario:
https://charts.cointrader.pro/snapshot/nR6sK
In this scenario, NANO breaks down another level down which would crush the remaining smaller holders to panic sell their entire stash (the ones that are left holding it), making it easy to accumulate for other holders.
This would invalidate the falling wedge on the bigger picture, but it would still fulfill bullish divergence on RSI.
Short term Bullish scenario:
https://charts.cointrader.pro/snapshot/DBmrj
Since most of the holders got shaken out already, I'm not sure that another leg down will be necesarry for NANO as it is already more than 97% down from its ATH in terms of BTC. In this scenario I expect a breakout from the wedge and start of next bull trend of NANO.
In both scenarios after consolidation I expect NANO to bounce back and reach new local highs of: 0.00017 BTC and 0.00034 BTC or even higher.
In summary, NANO is extremely oversold on all of the time frames and right now is a good risk reward ratio to start accumulating it and cost average your position due to many signs of reversal and approaching of crucial supports.
So targets for the trade are:
- Target 1: 0.00010
- Target 2: 0.00017
- Target 3: 0.00034
- *Target 4: 0.00052
- *Target 5: 0.00080
- *Target 6: 0.00125
- *Target 7: 0.00170
*optional targets
That's it from me today. Please share your opinions on this idea.
Enjoy your day everyone and see you soon.
Kind regards, crixus