- Nexo is a token that has been in the news very often as of late.
- Nexo was built with DeFi in mind – and thus it is a blockchain-based lending platform that offers users instant crypto-backed loans!
- However, amid its skirmishes with the US Securities and Exchange Commission – Nexo price has been taking a hit.
Nexo – a fairly recent token in the world of crypto – is a token that shot to prominence right when it was launched back in 2018. However, amid the raging bear market in the past year – Nexo price has taken a beating and also it had been lodged in a lawsuit against the US Securities and Exchange Commission (SEC). The SEC had charged the crypto lender with failing to register the offer and sale of its Earn Interest Product (EIP) with the authorities.
But according to latest news however, we have come to know that the Nexo project have agreed to pay the fine that is in relation to the case. Nexo has agreed to pay a hefty $22.5 million fine to the SEC and another $22.5 million to settle similar charges by state regulators.
Additional Read: Cardano Vs Dogecoin Price Prediction
Nexo has reached a final landmark resolution with the U.S. Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), consisting of all 50 U.S. States & 3 territories and the Attorney General of New York.🧵https://t.co/modjbPsOdV
— Nexo (@Nexo) January 19, 2023
While that is all well and good, and probably the reason behind the spike in NEXO price, let’s dive a little deeper and find out if this is a token that you should consider investing in.
NEXO TECHNICAL OVERVIEW
NEXO price, as is evident from the chart above, has not been performing well at all. The bear market of 2022 had been tough, especially considering the coin was launched in the middle of the bear run. However, since the beginning of the new year – NEXO price, in line with the rest of the market has been moving up and showing some bullish momentum on the charts. In the past two days, NEXO price has managed to rise over 12%, in fact is close to 15% as of writing this article. The positive news regarding the settlement of the case with the SEC seemed to have given some hope to those who wish to invest in this coin.
On the technical front, NEXO price has broken out of its 50 and 200 day moving averages – which is a pretty positive sign for the overall structure of the price chart. Other than that, it is currently trading at $0.81 and the $1 region would serve as a pretty strict zone of resistance as it was the last level of support before prices crashed in November and also, $1 happens to be a psychological resistance level too. Overall things look optimistic from a technical point of view.
However, on the other hand – the on-chain metrics for Nexo has a different story to tell!
Non-existent Development Activity in NEXO
One of the most shocking on-chain metrics pertaining to NEXO definitely has to be its development activity. The Development Activity for the NEXO token has been non-existent, at zero practically for the whole of last year except for a spike in the early days of July 2022. And considering how most of the year for the development activity has been practically zero, the spike in the middle makes little sense to an outside observer.
Supply patterns looking optimistic!
We have two metrics overlaid on top of each other in the chart above. The red line is indicative of the Supply on Exchanges while the yellow line indicates the Supply held by top addresses on the chain – both measured as a percentage of total supply of the token itself. Now, what this overall chart indicates that while supply of the token has been going down on exchange wallets, supply of NEXO held by large-scale investors has been increasing steadily at the same time!
A possible conclusion to this can be that these large-scale, investors of NEXO are steadily buying up this particular crypto from the open market amid the bear run and are constantly removing them from exchange wallets and transferring them to cold wallets for long term HODLing. This is an extremely positive signal for a crypto and thus, bodes well for the future price action in this coin.
Read More: Biggest Crypto Scams of 2022
In conclusion, it is safe to say that NEXO token presents a contrasting set of observations. On the technical front, we are seeing moderate amount of bullishness, along with positive news of resolution with the SEC and the on-chain support where long-term HODLers are buying up more and more NEXO tokens from the open market. On the other hand, we’re seeing that the development activity for the token is absolutely non-existent – which is a major red flag for any crypto project, especially one that is involved in crypto lending. So overall, this is a token that you should keep an eye out for as things may change for the better soon!
Prices as on 20 January, 2023.
Billion-dollar BTC withdrawals signal bullish momentum, eyeing $40K.
Blockchain leaps with RARI Chain, Aragon DAOs, and ACS Innovations!