Nexo Credit Initiative Fuels $1.25 Price Target

• Users are getting optimistic about the new Nexo credit campaign.
• Technically, the most important support level is at $1.20, while the nearest resistance is around the $1.25 range.
• An 11.5% increase in futures trading interest indicates a positive price outlook for the token by traders.

Nexo token price has remained around $1.21 in the last few weeks. Traders are monitoring whether the support level of $1.20 can enable it to continue its upward movement. 

This follows a new initiative introduced by the company. Nexo will provide up to $200 million in crypto-backed credit to its customers without needing to sell their crypto.

A New Initiative

According to Nexo, customers can obtain funds within 24 hours free of interest. This would help individuals who cannot purchase items such as a yacht or a house with their crypto. Through this project, the company aims to bridge crypto ownership with traditional payment settlements.

Key Pivot Price Zones

Technicals indicate that NEXO is trading below its session VWAP value of $1.213. This means that sellers retain greater control. However, the Fibonacci retracement level shows that there’s a level of resistance at $1.25.

The next will be at $1.30 and later $1.41, provided the price uptrend continues. The significant support level is at $1.20. A drop lower than this can cancel the recovery narrative. The shifting point is the area that can determine the change in price. This is the $1.25 level.

Fib. and VAWP. Source: TradingView

Also Read | Aptos Price Analysis: APT Consolidates at $4.07, Can Bulls Push Toward $6.80?

Momentum Indicators Show Hesitation

RSI on the 4-hour chart displays weak momentum at 41. But it’s not in oversold territory yet. The signal from the MACD is flat and has no evident trend. Using a combination of all these indicators, it is an indication that the market is still in a waiting phase. But pressure is increasing. Bulls will have to be more confident and propel NEXO beyond $1.25.

MACD and RSI. Source: TradingView

Cautious Optimism

According to Coinglass derivatives data, there is rising optimism, although the demand on spot has been sluggish. The futures volume increased by 8.38% to $143,000. Also, the open interest increased by 11.5% to $653,000.

The open interest is increasing and shows that more traders are now preparing to take positions. An increase in volume portrays the potential of short-term fluctuations. However, unless the spot market experiences a strong breakout, futures activities may not cause any lasting impact.

Source: Coinglass

Next Phase for NEXO

The token’s next direction will depend on whether it continues to trade above $1.20. Assuming this holds, the next target would be $1.25 and $1.30. Extremely high on the Fibonacci analysis would be the $1.41 price zone.

The integration of futures contracts, derivatives turnover, and corporate statements will determine the future price direction for NEXO. Traders may be a little optimistic due to a rise in derivatives demand and the flatness from momentum indicators. The next trading sessions will show whether confidence in Nexo’s ecosystem translates into price gains.