Why is the Nexo (NEXO) price increasing?

The Nexo cryptocurrency project (NEXO) may not be the top-ranked asset, given its position as the 88th largest coin by market cap, but it is certainly one of the top-performing projects. at present. The coin has seen a significant rise in price over the past few days, which has attracted the attention of traders and analysts.

What is Nexo?

Nexo is a blockchain-based lending platform that allows users to get instant loans backed by cryptocurrency. Essentially, all users need to do is deposit one of the four accepted coins that they own but don’t want to spend, including Bitcoin, Ethereum, XRP, or Litecoin. After providing collateral in the form of one of these coins, they can instantly receive a loan in the form of stable currency or fiat currency.

The project also has its own native token, NEXO, which offers a number of benefits when locked to its own platform. These include discounts on interest on loans, as well as the ability to receive interest payments on deposited funds, making it a very useful token to have. Not to mention that token holders can also benefit from dividends from the project’s own profits if they hold NEXO.

Nexo is also the first project to offer instant crypto-backed loans, aimed at solving inefficiencies in the lending market. Of course, like all other loan projects, it relies on smart contracts, but also oracles within the Ethereum blockchain to manage loans.

As soon as the collateral is deposited in a wallet controlled by Nexo, the oracles establish the loan and allocate the funds to the lender instantly. That being taken care of, let’s take a quick look at how Nexo’s price has evolved so far, and in particular over the last few days.

Nexo price history

The first thing to note is that Nexo launched in April 2018, just when the bear market seemed to stop and the bulls were trying to come back. This allowed its price to start climbing immediately and drop from its starting price of $ 0.21 on May 2, 2018 to $ 0.40 on May 8 of the same year.

The bullish breakout ended right after that, and the bears returned to full strength, pushing the price of NEXO down to $ 0.04 as its lowest point. Throughout 2019 and most of 2020, NEXO didn’t stray too far from its bottom, and it didn’t start seeing real growth until around November 2020, when it hit $ 0.1. for the first time. Only two months later, the coin reached its highest point in its history so far at $ 0.7, correcting slightly in the last days of the year.

Nexo price 2021

In 2021, Nexo exploded like never before, starting its skyrocketing in the last days of January. Sitting at $ 0.6 around this time, the coin suddenly skyrocketed and continued to rise for months, finally hitting its all-time high at $ 4 in mid-May 2021, just before the price drop. which halved the value of the entire crypto industry.

NEXO fell from $ 4 on May 12 to $ 1.1 on May 23, and although it saw an immediate rally after that, it fell back to its low at $ 1.5 after that. That support has been pretty strong since then, and it’s the only thing that has kept NEXO from falling below $ 1.

In fact, between the end of June of this year and now, NEXO has fluctuated between $ 1.5 and $ 2, never strong enough to break through $ 2, but often threatening to break the $ 1.5 support that held it back. to continue its major decline.

Fortunately, support held and interestingly, resistance was the first to break in Nexo’s last rally.

The new rally began just two and a half days ago, at the end of October 18, pushing the $ 1.7 coin where it then stood at the time to $ 2, and after briefly struggling with resistance, it finally broke. The coin rushed to $ 2.1, which is where it encountered a new barrier that it also managed to break. Right now it’s at $ 2.14, staying very close to $ 2.1, but apparently treating that level as new support now.

Why are NEXO prices going up?

A few days ago, the New York attorney general’s office published that it had sent cease and desist letters to two crypto lending platforms, but did not reveal the names of the companies. It was quickly discovered that the target companies were Celsius and Nexo, which Nexo quickly confirmed.

However, the crypto company characterized the arrival of cease and desist as obvious confusion, as it was ordered to cease offering its services in a state in which its services are not offered and is not offered. have never been offered until now. As soon as the company pointed out that the cease-and-desist order didn’t make much sense in its own case, its coin began to rise, potentially due to increased attention caused by the order itself. to cease and desist which could have paralyzed her.

As to how long NEXO can last before losing momentum, that remains to be seen. There is no certainty about this, so anyone who buys Nexo for its current rise in popularity might want to carefully analyze it first and try to determine for themselves whether or not now is the right time to. buy, and what could be the next step for the coin.

Rosalie M. Dehner