bitseven alexametrics

Loading...

bitseven

bitseven

bitseven

Nano (NANO) Technical Analysis: Was NANO Really Pumped or Is There Genuine Sentiment?

August 30, 2018 08:41:38

articleStartImage

Nano is correcting after a wild 12 days of bullish activity that saw the asset springboard more than 340% off the bottom after a six-month long decline. Nano’s 24-hour trading volumes increased dramatically during the frenzied uptrend - from $10 million to $100 million - the highest levels we’ve seen for this asset since March.

On August 14, Nano started a sudden rally after the price found support along the 1,275 Sats level, allowing it to claw back losses endured over July and early August. Cryptovest recently reported on this sporadic reversal, finding evidence to support claims that the initial bull run could have been triggered by a pump group on social media. In the absence of any obvious significant updates, other than the new 15.2 node update which decreases voting traffic, this is looking like a plausible explanation.

If the recent activity was spurred by genuine market interest however, bulls could now be collecting in preparation for a third and final impulse move after finding temporary support at the 4,100 Sats mark. This pattern would satisfy a 5 point Elliott Wave progression, where the general uptrend is comprised of 3 bull runs (impulse moves) and 2 pullbacks. One of the criteria in Elliott Wave Theory is that point 4, the second pullback, cannot enter into the same area as point 1, the opening bull run.

The asset corrected briefly before a second, much stronger, impulse wave ensued. Nano was then carried again a further 150% up by the bulls, this time creating a ‘golden crossover’ between the 50/200EMA lines. This strong bullish signal will have no doubt drawn other buyers into Nano, who will have sought to capitalise on the sudden uptrend.

If the recent activity was spurred by genuine market interest however, bulls could now be collecting in preparation for a third and final impulse move after finding temporary support at the 4,100 Sats mark. This pattern would satisfy a 5 point Elliott Wave progression, where the general uptrend is comprised of 3 bull runs (impulse moves) and 2 pullbacks. One of the criteria in Elliott Wave Theory is that point 4, the second pullback, cannot enter into the same area as point 1, the opening bull run.

Looking at the Fibonacci retracement, we can see that NANO still has some room to manoeuvre if bearish momentum temporarily picks back up, with a major support at the 0.236 fib level below (3,570 Sats) still above point 1.

Looking at the indicators over 2hr candles however, we can see a number of bearish signals starting to appear that suggest Nano was indeed pumped and is now starting to fall:

  • The 12MA has fallen well below the 26MA and both have dived below the zero line, on the MACD indicator.
  • The asset was tracking along a supporting level inside the RSI channel where NANO was able to launch into the overbought region twice from, during the last two uptrends. Now however, the indicator is showing a significant decline in momentum as NANO starts to head towards the oversold region.
  • There has been a bearish divergence below the signal line on the CMF indicator, as selling pressure starts to increase.
  • On the Bollinger Bands, NANO is now starting to bearishly pass below the lower band.
  • On the Ichimoku indicator, candles have already bearishly passed through the supporting kumo, along with a negative T/K divergence.


Nano (NANO) price targets

All price targets are set from the 0.382 fib level at 4,001 Sats mark.

Price target 1: Decline to the 0.618 fib level at 2,962 Sats (25.97% loss)

Price target 2: Temporary bullish pullback towards 0.5 fib resistance at 3,481 Sats (13.00% loss)

Price target 3: From here it’s likely that NANO will fail to break through the 0.5 fib level and bears will start to take over. We should expect a fall to the next support level around the 2,645 Sats market which has been a key level in the recent price history. (33.89% loss overall)

Category: News

Share this:

Newsletter

Enter your email to stay up to date with BitSeven news, update & announcements

Recent posts

    Categories

      Keywords