- Nexo price dropped to an all-time low on Monday morning.
- Celsius, a competitor, decided to pause all withdrawals.
The Nexo price to a record low after some disappointing news from Celcius, a competitor. The token dropped to a low of $0.8100, bringing its total market cap to about $479 million. At its peak, the Nexo token was valued at over $1 billion.
Celsius pauses withdrawals
Celcius is a blockchain company that enables people to earn interest from their cryptocurrency assets. At its peak in 2021, the company had more than $20 billion in assets under management. This made it the first crypto company to get its AUM to that level. It has over 1.7 million customers globally.
Celsius runs a business that is similar to Nexo. Nexo offers services like deposits, Visa card, and earn features. At its peak, Nexo had over $15 billion in assets under management and over 4 million global users.
The Nexo price has been in a strong bearish trend in the past few months. This decline happened in line with the performance of other digital coins like Bitcoin and Ethereum. It also coincided with a sharp decline of its AUM as more people withdrew and as the value of their crypto declined.
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Now, the situation seems to be moving from bad to worse. In a statement on Monday morning, Celsius said that it was pausing withdrawals, swap, and transfers between accounts. It attributed this new policy to the rising volatility in the crypto industry and the need to protect users. The statement said:
“Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible. There is a lot of work ahead as we consider various options.”
Therefore, the Nexo price is tumbling as investors believe that the platform too could be forced to take similar measures.
Nexo price prediction
The daily chart shows that the Nexo price has been in a strong bearish trend. It managed to cross the important support at $1.3281, which was the lowest level in September last year. Since then, Nexo has moved below the 25-day and 50-day moving averages. It even crossed the important support level at $0.9752.
Therefore, the Nexo token will likely continue falling as bears target the next key support level at $0.7500. This view will be invalidated if the price moves above the resistance at $1.
