NEXO Technical Analysis Feb 5

NEXO is trading at the $0.68 level with a 10.25% drop in the last 24 hours and is at a critical turning point with an oversold RSI (22.56). The market carries both bounce potential from strong supports and downside breakdown risk, with both scenarios shaped by BTC correlation.

Current Market Situation

NEXO’s current technical chart indicates a dominant downtrend. While the price is consolidating around $0.68, the 24-hour change is -10.25% and trading volume is at $5.27M. RSI at 22.56 is in the oversold region, offering short-term bounce potential, but MACD’s negative histogram confirms bearish momentum. The price remains below EMA20 ($0.87) and the Supertrend indicator is giving a bearish signal, with resistance at $0.88. In multi-timeframe (MTF) analysis, 12 strong levels were identified across 1D (2S/4R), 3D (1S/4R), and 1W (3S/4R) timeframes; in the short term, $0.6732 support (80/100) and $0.7286 resistance (69/100) are critical. Although the overall trend is downward, oversold conditions may signal a reversal.

Scenario 1: Upside Scenario

How Does This Scenario Unfold?

The upside scenario can be triggered by a bounce from the oversold RSI. First, a close above $0.6867 resistance (67/100) with increased volume is required; if broken, momentum builds toward $0.7286 (69/100). MACD histogram approaching the zero line and progress toward EMA20 strengthens bullish divergence. The trend change on the 1D timeframe is confirmed when Supertrend turns green. Breaking the resistance clusters in MTF (total 8R) on 3D and 1W opens the path to $0.7880. BTC stabilization (holding above $62,345) supports the altcoin rally. A 50%+ increase in volume and RSI rising to 50, with invalidation criterion being no break below $0.6732 support.

Target Levels

First target $0.7880 (65/100), followed by Fibonacci extension levels to $1.1150 (19 points). This target was calculated from the 61.8% retracement of the last rally. R/R ratio is around 1:3 from current levels; after $0.7286 breakout, stop-loss can be trailed below $0.6732. Long-term 1W target could extend to $1.20 if MTF resistances are cleared.

Scenario 2: Downside Scenario

Risk Factors

The downside scenario activates with a close below $0.6732 support (80/100), continuing the current downtrend. MACD becoming more negative and RSI dropping below 20 reinforces momentum. Supertrend remaining bearish and distancing from EMA20 confirms short-term bearish structure. BTC breaking $62,345 support (already weak with -12.70% change) will drag NEXO down, as altcoins are affected by BTC dominance. Volume spike leads to a slide to $0.61 (71/100), triggering 1D/3D support breaks in MTF (total 6S). Invalidation is failure to hold above $0.7286 resistance.

Protection Levels

First protection at $0.6100 (71/100), then $0.50 psychological zone, and final target $0.2676 (20 points). This level was calculated via extension from the 1W low. R/R 1:2.5; post-entry stop above $0.6867. Additional supports cluster around $0.48 on the 3D timeframe, increasing long-term risk.

Which Scenario to Watch?

Key triggers: For upside, volume breakout above $0.6867/0.7286 and RSI divergence; for downside, close below $0.6732 and BTC sync. Confirmation signals include MACD crossover, Supertrend flip, and volume profile. Daily candle closes are critical; doji or hammer signals upside, shooting star signals downside. MTF alignment (1D+3D+1W) determines scenario strength. Monitor additional data from NEXO Spot Analysis and NEXO Futures Analysis pages.

Bitcoin Correlation

Altcoins like NEXO show high correlation with BTC price movements; BTC is in a downtrend at $63,711 with -12.70% drop and bearish Supertrend. If BTC holds $62,345 support, NEXO’s bounce chance increases, but a break to $59,167 triggers cascade selling in altcoins. BTC resistances at $66,254/68,193 should be watched; BTC rally carries NEXO to $0.7880, downside pushes below $0.61. Rising dominance increases altcoin risk, confirmed by BTC/BTC.D chart correlation.

Conclusion and Monitoring Notes

NEXO at $0.68 area is a decision point; both scenarios are valid, traders should monitor trigger levels and BTC correlation. Watchlist: $0.6732S/$0.6867R daily closes, RSI/MACD divergence, volume +30% change, BTC $62k. Risk management is essential; long/short positions should be adjusted per invalidation. Market is volatile, no news flow but macro factors (BTC dominance) are decisive. Follow platform data for NEXO spot and futures. This analysis is a tool to enhance traders’ own decisions.