- Nano is attempting to recover higher after an extended period of losses
- Bearish head and shoulders pattern looms across the lower time frames
- Nano is bearish in the medium-term although technical indicators appear oversold
Nano / USD Short-term price analysis
In the short-term, Nano is bearish and has been under sustained selling pressure since late January. The Nano / USD pair is probing the neckline of a bearish head and shoulders pattern on the four-hour time frame, with most technical indicators attempting to recovery from oversold conditions.
If a recovery above the neckline starts to take shape, a strong bullish move could occur, which could create a much larger right-hand shoulder to the aforementioned bearish pattern.
Nano / USD pair’s 50-period moving average offers strong technical resistance in the short-term, which is just before the important 90.0000 technical region.
The head and shoulders pattern across the lower time frames is the key pattern to watch over the short-term horizon.
The MACD indicator is attempting to correct higher on the four-hour time frame, although a clear bullish trading signal has yet to be generated.
The Stochastic indicator is also attempting to correct higher after moving towards oversold territory.
Nano / USD Medium-term price analysis
Nano is bearish in the medium-term after breaking below a major trendline on the daily time frame. The Nano / USD pair clearly shows the potential for an intraday reversal as some technical indicators are now heavily oversold.
The Nano / USD pair is still trading below its 5-week trading range following last weeks bearish move lower, a recovery back towards the rising trendline appears the most likely scenario if Nano trades back inside its former trading range.
The failed inverted head and shoulders pattern is the major theme across the daily time frame. Traders should also note that the 90.0000 area has been used as a key trading pivot since late December of last year.
The Momentum indicator on the daily time frame is attempting to recover higher after last week’s heavy sell-off. If the Momentum indicator trades above the neutral line, traders should pay attention to the indicator to gauge the overall strength of the recovery.
The stochastic indicator has reached extreme oversold conditions and appears overstretched on the daily time frame. If this indicator starts to correct higher, it may signal the start of a bullish reversal in the Nano / USD pair.
Traders should ultimately watch for a short-term rebound in Nano. The four-hour and daily time frames highlight the importance of the 90.0000 technical level. Failure to surpass this key technical area will likely signal a continuation of the longer-term bear trend currently well underway in this cryptocurrency.
Decentral Media, Inc., the publisher of Crypto Briefing, is not an investment advisor and does not offer or provide investment advice or other financial advice. Nothing on this website constitutes, or should be relied on as, investment advice or financial advice of any kind. Specifically, none of the information on this website constitutes, or should be relied on as, a suggestion, offer, or other solicitation to engage in, or refrain from engaging in, any purchase, sale, or any other any investment-related activity with respect to any transaction. You should never make an investment decision on an investment based solely on the information on our website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an investment.