Nebulas (NAS) Technical Analysis: Spikes on Atlas Protocol Airdrop Announcement, Where to Next?

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Nebulas was performing strongly this morning during its second impulse leg, with a 22% gain against BTC after correcting from yesterday’s 33% rise. In the last 48hrs, NAS trading volume has swelled a massive 750% from just $2,000,000 to a height of $17,000,000, with most trades taking place on the Binance exchange. Right now the crypto market has taken a sudden fall, sliding $3 billion in the last 2 hours. Nebulas has subsequently lost most of today’s progress but we could see renewed bullish support return once the crypto market stabilizes.

What caused Nebulas (NAS) to suddenly spike recently?

The project announced on September 30th that it would be airdropping the Atlas Protocol’s native ATP tokens to all NAS mainnet addresses soon. The Atlas Protocol (AP) is an on-chain digital marketing and advertising project incubated by Nebulas Labs and Ex-Googler Blockchain Alliance (XGBA). The project went live in April this year and has already created a lot of excitement, recently securing capital from SB China Capital, Danhua Capital and Baidu Ventures, as well as partnering with BitMart exchange to implement AP’s own “SmartVoting” system. 

According to the official Medium post, on October 15th at 16:00 (UTC+8) a snapshot will be taken of all NAS mainnet addresses and an undisclosed ratio of ATP will be distributed between them. For members of the community that are still holding NAS ERC20 tokens, they will need to migrate them across to the mainnet using the instructions provided in the aforementioned post.

Diving into the video analysis posted this morning we saw that short-term momentum was already showing signs of flagging, particularly on the MACD, RSI and CMF indicators, as the initial hype surrounding the airdrop announcement was starting to die down.

Right now the recent market downturn in the last few hours has no doubt exacerbated the asset’s correction, with NAS already approaching the projected main support at 25,000 Sats as traders likely exit into pegged-value coins. A bearish double top has also formed recently over 1hr candles as the second wave of bullish support failed to close above the same 27,550 Sats resistance that the first struggled against. We could see bullish traders push back once NAS hits the strong support below, creating a bullish double bottom instead but we would need to see candles breakout above the double top line before confirming a bullish reversal.

Alternatively we could see a bullish ascending triangle form if the current price action manages to hold above the support below.

Nebulas (NAS) Price Targets

All price targets are set from the 26,000 Sats mark where the asset is currently valued at the time of writing.

Price Target 1: First main resistance at 27,550 Sats (5.96% ROI)

Price Target 2: Continuation to 28,000 Sats (7.69% ROI)

Price Target 3: Retest key resistance at 29,400 Sats (13.08% ROI)