NEXO bounces from support as crypto market dips

The cryptocurrency market has recorded a major decline during the past 24 hours, and most coins are going back to their lower support levels. The market dip coincides with the growing concern of the US Federal Reserve raising the interest rates next month. The institution will take this action to tame the growing level of inflation in the US that now sits at a four-decade high.

NEXO (NEXO/USD) has dipped by around 3.5% during the past 24 hours. The token was trading at $2.16 at the time of writing.

NEXO bounces from support

During the past 24 hours, the price of NEXO has ranged between $2.07 and $2.26, signalling a rise in market volatility. After touching the support level at $2.07, buyers stepped in, anticipating the market to make a recovery as it has done during the past few months.

If the buyers maintain the support, NEXO will test the immediate resistance at $2.18, after which it could be primed for a recovery towards the 24-hour high of $2.26. If the market support comes in, NEXO could target the February 10 highs of $2.32.

Going to $2.50 is also possible if the bullish flag across the crypto market is strong. The coin had made a recovery at the beginning of the year before volatility kicked into the sector. If the market makes a full recovery and enter a bull market, such levels could be reached.

NEXO’s recovery hindered by several factors

If the buying pressure declines, the token could test the lower support of $2.07 again. Going below $2 is also possible given the developments across the broader cryptocurrency market.

The US President, Joe Biden, is expected to sign an executive order regulating cryptocurrencies next week, creating anxiety among traders that will rush to dispose of tokens. Additionally, the Federal Reserve is expected to raise the interest rates next month, and in anticipation of this, the market has been facing increased volatility.

Due to these events, NEXO could test the January 24 lows of $1.76. The price action at this point will be determined by the broader market’s performance.  

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