Technical Analysis

Nosana (NOS) price prediction: Will $1.20-$1.80 lead to 500% gain?

Updated: Aug 27, 2024

Published: Aug 15, 2024

Nosana, one of the good beta plays we like on the Solana network, is telling a compelling story through its charts. The broader market has seen similar patterns where explosive moves are followed by necessary consolidations, setting the stage for the next leg up.

Current state

Nosana has demonstrated significant volatility, particularly earlier this year in February when it went through a contraction phase, consolidating before expanding into a massive rally of over 500%, moving from $1.20 to $7.90.

This expansion was followed by a period of consolidation, a phase often characterised by market participants being shaken out, transferring the asset to stronger hands who can carry the momentum forward.

Price chart of Nosana USD showing significant rally, double bottom formation, false supports, and potential rebound zones marked

Key observations: Double bottom and Liquidation

In April, the price formed a double bottom structure, leading to a higher high swing, marked by the red dots. However, this was quickly liquidated on the downside, taking out all the stop losses (SLs). A similar pattern emerged in mid-June when the price created a contraction pattern that broke down in July.

False supports and reset

This chart behavior is indicative of the market resetting, with false supports being broken to take out SLs and kick out weaker hands. The price has now returned to its demand zone between $1.20 and $1.80, currently trading at $1.45. This is the same demand zone from which Nosana previously exploded by over 500%.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

Potential scenarios: Bullish rebound

With the price currently in the $1.20-$1.80 demand zone, Nosana is poised for another significant rally, potentially mirroring its previous explosive move.

Target levels

There are a few price targets marked on the right side of the chart for partial profit bookings as the price moves higher.

Conclusion

Nosana is currently trading within its crucial demand zone, setting the stage for another possible explosive move. This asset has a history of significant volatility, and the current setup suggests a high probability of a strong rebound. Keep an eye on the marked price targets for profit-taking opportunities as the price progresses.