Nosana price rose as much as 134% over the past week, driven by renewed buying from whales, along with a drop in exchange balances.

According to data from crypto.news, Nosana (NOS) rallied to a 6-month high of $1.27 yesterday, Sep. 14, before settling at $0.91 at press time. At this price, it is up 134% in the past 7 days but still below 76% from its year-to-date high.

Whale activity seems to be the main driver for NOS gains over the past week, as the token fell to a two-year low on Sep. 10.

Data from Nansen shows that the total balances of NOS tokens held in whale wallets increased by 41.8% over the period to 1.43 million. Such a large-scale buying trend from whales often triggers FOMO among retail investors, adding further buying pressure for a token.

Additional data from the blockchain analytics platform reveals that the total amount of NOS tokens held on exchanges (both centralized and decentralized) dropped 7.5% over the last 7 days to 13.24 million when writing. 

A decline in exchange balances means that fewer tokens are readily available for sale, reflecting a reduction in short-term selling pressure. Traders typically turn bullish in such a scenario, as they interpret it as increased conviction among holders.

The increased accumulation by whales, combined with investors withdrawing their tokens from exchanges, has triggered a significant surge in retail demand as Nosana continues to trend in Google searches.

What is Nosana?

Nosana is a decentralized compute protocol built on Solana, designed to provide low-cost, distributed infrastructure for AI model training, DevOps workflows, and Web3 CI/CD automation.

The project’s goal is to offer a decentralized alternative to traditional cloud services like AWS, Google Cloud, and Microsoft Azure by allowing developers to run containerized jobs, including code builds, model training, and smart contract testing across a permissionless network of independent compute providers.

NOS plays a central role within this economy as it is used for job payments and network incentives. Users can also stake the token and participate in governance votes.

NOS price analysis

NOS price has broken above a descending trendline this week after touching nearly two-year lows on the daily chart. This trendline, in place since mid-May, had kept the price under sustained downward pressure. 

In technical analysis, a breakout above such a pattern is interpreted as a bullish reversal, which signals the potential start of a new upward trend.

Reinforcing this outlook, the Supertrend indicator has flipped to a green signal and remains positioned below the current price level, which traders widely regard as a buy signal.

At the same time, the MACD line had formed a positive crossover with the signal line. When this signal appears, the rally tends to continue upwards in the short term.

Given the current setup, the next likely move for NOS would be a recovery rally to its recent high of $1.27. 

A decisive breakout above this resistance could open the way for a rally toward $1.92, based on a measured move calculated from the Fibonacci extension levels. At press time, the projected target remains 110% from the current price level.

However, a drop below the $0.74 support, which aligns with the 38.2% Fibonacci retracement level, would invalidate this setup.