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Technical Analysis

Nosana technical analysis: Can price rally 350% to $7.90 soon?

Published: Oct 7, 2024
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After consolidating for about a week, Nosana made an impressive 450% run to the upside, setting its swing high and all-time high at 7.9. Since then, we've seen a significant correction of around 81%, a substantial hit to the asset.

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Market context

In the weekly timeframe, Nosana returned to a key range between 1.32 and 1.76. This zone is significant because it acted as resistance back in January 2024, followed by a strong weekly candlestick that led to short-term consolidation.

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.


With such a large pullback, it's natural to see some accumulation and renewed interest at these levels. The positive sign came in August when we saw an aggressive bullish candle form during the week of August 19th, breaking the overall bearish resistance trendline. Price action then retraced, coming back down to retest the 1.76 level, which has held as support. This retest of a previously broken resistance zone is a strong signal that Nosana could be positioning for another move to the upside.

6. Nosana (NOS) price chart shows a downtrend with current support at 1.32 and resistance at 4.33, RSI near oversold

On the daily timeframe, Nosana has been trading within this region and recently experienced a breakout above the resistance trendline. However, the price came back to retest 1.76, respecting this level and confirming it as support. This pullback presents a potential accumulation opportunity, as the setup aligns with a higher timeframe structure and offers a favourable risk-to-reward ratio for a move back toward all-time highs.

The first key resistance level to watch is 2.7, followed by 3.2. Reclaiming 3.2 would shift market sentiment back into a bullish outlook, as this level was pivotal earlier in the year, forming a clean double bottom in April and May. Once the price breaks above 3.2, it's likely we'll see some bullish momentum with the potential for a move back to the all-time highs at 7.9, representing a 350% gain from current levels.

7. Nosana (NOS) daily chart showing a retest of 1.32 support, RSI around 50, indicating neutral momentum with downtrend intact

Playbook

Key levels:
  • Support: 1.76
  • Resistance: 2.7, 3.2
  • Long-term resistance: 7.9 (all-time high)

Trading setup

The range between 1.76 and 1.32 is a key accumulation zone. With the price now respecting the 1.76 level after retesting it as support, this could present an opportunity for a spot play targeting 2.7 and, eventually, 3.2. A clean break above 3.2 would set the stage for a broader bullish move toward all-time highs at 7.9

Risk management

The main focus should be on the 1.76 level. If this level holds, we could see a significant upside potential. A failure to hold this support would require reassessing the trade setup, particularly if the price drops back toward the lower end of the range around 1.32.

Market sentiment

Nosana has shown strength, with the breakout of the bearish and the successful retest of support at 1.76, signalling potential bullish momentum. The asset's strong structure and the opportunity to capitalise on a 350% move back to all-time highs make it worth monitoring.

Cryptonary's take

Nosana's structure remains solid, and while we aren't currently positioned in it, this is a cryponarys picks asset and the key levels around 1.76 and 3.2 present a clear roadmap for potential upside. A clean break and reclaim of 3.2 would likely shift market sentiment back to bullish, with the potential for a strong move toward 7.9. This setup offers a favourable risk-to-reward scenario, and an accumulation of around 1.76 could yield significant gains.

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