NEXO has been seeing bullishness in the markets as positive macroeconomics boosts the broader financial market. According to CoinGecko, the token is up nearly 6% in the past 24 hours, and currently trading at $0.7072.
The price action can be attributed to the bullish sentiment surrounding the crypto market.
CoinMarketCap reveals that the total market cap of crypto increased by over 2% in the past day. As the crypto market continues to experience a strong bullish sentiment, NEXO might be in line for a bigger upside in the coming weeks.
Positive Macros Boost Bullish Sentiment
Yesterday was important for the broader financial market. Recent news says that the consumer price index– the measure of how expensive certain goods are– has gone down year-on-year. From 6% back in February to just 5% this March, the lowest ever since 2021.
This lower inflation was caused by the US Federal Reserve’s aggressive policy. At the time of writing, the current interest rate stands at 5%. Although the current development is considered a step in the right direction, the fear of a recession still plagues the financial market.
DOW futures climbed, but the fear of a recession limited further gains. However, this sentiment was not reflected in the crypto market. Bitcoin and Ethereum, two of the biggest crypto assets, both edged psychological highs, further propping the entire crypto market for higher highs.
With other cryptocurrencies following Bitcoin and Ethereum closely, NEXO’s current price action might continue if the market maintains its momentum in the long run.
NEXO Bulls Expected To Target This Level
At its current price point, investors and traders should continually target $0.8950. The token has a negative correlation with Bitcoin, but the sentiment surrounding the king coin affects the price action of NEXO.
Investors and traders should then monitor the macroeconomic situation as it would affect the broader crypto market, thus affecting NEXO as well. Targeting $0.8130, in the short term, would give the bulls reliable support for a drive toward $0.8950.
NEXO/USD trading at $0.70 on the 1-Day chart on TradingView.com
However, the current momentum of the NEXO market favors the bulls in the short to long term. The price action suggests that long positions outnumber short sellers by a small margin. Despite this, investors should be aware of a potential downside.
If the bears gain control of the market, the token might fall back to $0.5480. Defending the current support at $0.6470 would deter any bearish momentum to continue the current price action.
-Featured image from Binance Academy