The NEXO price has wavered recently after it surged to the key resistance level above $2.07. The coin is trading at $1.7950, which is about 14% below the highest level this month. As a result, the NEXO coin has a market capitalization of more than $982 million, making it the 88th biggest cryptocurrency in the world. It sits between Harmony ONE and Paxos Standard (PAX).
What is NEXO?
NEXO is the native token for the Nexo ecosystem. Now, Nexo is a financial company headquartered in London. The firm has raised more than $52.5 million from venture capital firms. Its core product is a platform where people can borrow fiat currencies using their cryptocurrencies as collateral. It also allows people to invest and earn an interest rate.
NEXO token holders receive dividends periodically. According to the company, it has already paid more than $29 million in dividends to NEXO holders in the past three years. The holders also borrow at a lower interest rate in its marketplace and have voting power. Additionally, they receive a daily interest that is usually paid in the tokens.
The NEXO price jumped to an all-time high of 4.1358 USDT in May. Since then, the price declined by more than 75% and settled to a low of 0.9986 USDT in June. The recent rebound is mostly in line with what other cryptocurrencies have done. For one, Bitcoin and other altcoins have all jumped by more than 50% from their lowest level in July. So, what next for Nexo?
NEXO price prediction
The chart below shows that the NEXO price found an important support at 1.0323 USDT in July this year. The coin struggled moving below this level several times in the past few months.
At the same time, the coin is trading at the same level as the 25-day and 50-day weighted moving averages (WMA). Still, the recovery rally seems to have hit a major barrier at the $2.07 level.
Therefore, there is a probability that the strong recovery rally is fading. If this happens, the coin will likely retest the next key support at $1.5 and then resume the bullish trend in the near term. On the flip side, a jump above 2.07 will invalidate the bearish view since it will signal that there are more buyers in the market.