The cryptocurrency market continues its decline following an uptrend in late 2024. Nexo (NEXO) has also faced challenges, declining by over 23% in the last 90 days. However, despite the broader weakness, the token has managed to hold a key support level, indicating possible signs of stabilization.
Crypto Market and Nexo's Position
Since the beginning of 2025, many leading altcoins have faced steep price corrections, with Nexo being no exception. The token's value has dropped over 23% following the formation of a bearish pattern on its chart. Nonetheless, Nexo has managed to hold a key support level near $1.09, showing some indications of stabilization.
Formation of Bearish Double Top Pattern
Nexo recently formed a bearish double top pattern near the $1.55–$1.60 zone, followed by a breakdown below the neckline at $1.03. This led to a further drop, testing a key support area between $0.89 and $1.00. This zone is supported by the 200-day moving average, emphasizing its importance. With Nexo holding this critical support along with the 200-day MA, there is room for potential recovery.
Recovery Prospects for Nexo
Technical indicators suggest a possible slowdown in bearish momentum, as seen by the flattening MACD. A bullish crossover could signal a trend reversal. However, if Nexo fails to defend this support zone, it might face further downside pressure.
While technical indicators offer hope for a rebound, the market remains sensitive to broader sentiment and macro developments. Investors should closely watch for confirmation signals.
