Nexo price went parabolic and then quickly erased most of the gains as cryptocurrency prices recovered. The token jumped to a high of $1.0541, which was the highest level since June 12th. This price was about 92% above the lowest level in June of this year.
Cryptocurrency prices rebound
Nexo is a leading blockchain company that offers a number of services. Its primary product is a platform that lets people borrow money that is backed with their cryptocurrencies. Nexo also offers an investing platform that lets people earn excellent returns by just depositing their coins. For example, you can earn an APY of over 10% by holding coins like Avalanche and Solana.
Further, Nexo has a card that lets people spend their coins without withdrawing their cryptocurrency holdings. In addition, Nexo operates an exchange where people can buy and sell cryptocurrencies like Bitcoin and Ethereum.
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Nexo is a large company that has over 4 million customers globally. In the past few years, the firm has handled cryptocurrencies worth over $80 billion.
Nexo, like other companies in the industry, has come under intense pressure because of the ongoing crypto crash. The firm has been under more fire because its operations are similar to that of Celsius, a company that recently filed for bankruptcy.
Nexo has defended its business by citing its strong balance sheet and the fact that it lends funds from its Earn Crypto product on a strictly overcollaterization basis. This means that it will do well even if many customers default. The company also spend money to acquire Vauld.
The Nexo price is rising as investors cheer the rebound of cryptocurrencies. This also explains why shares of companies like Coinbase and SoFi jumped sharply on Monday.
Nexo price prediction
The four-hour chart shows that the Nexo price went parabolic on Tuesday. As it rose, the coin managed to move above the descending trendline that is shown in blue. It also rose above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) rose above the overbought level.
The current price of $0.7357 is an important support level since it was the highest point on June 7th. While the pair has retreated, there is a likelihood that it will keep rising as investors buy the dip. If this happens, the next key level to watch will be at $1.