NEM (XEM) managed to gain (at one point) 20% on the day after its price bounced from the long-term triangle formation. However, the cryptocurrency then started retracing and lost almost all of its gains. What’s next in store for NEM, and should you buy some XEM now?
Fundamental analysis: Nikkei Sangyo Kokokusha starts working with the NEM Foundation
NEM, or New Economy Movement, is an ecosystem of platforms that use blockchain to provide solutions for both businesses and individuals. NEM’s native cryptocurrency is called XEM. The cryptocurrency was originally created by three developers only known by their pseudonyms: Jaguar0625, BloodyRookie and gimre.
NEM’s overall outlook is extremely bullish, mostly due to its booming fundamentals. NEM made an announcement on its Twitter that Nikkei Sangyo Kokokusha, a part of the Nikkei Group, will start working with the NEM Foundation in Japan to build NEM’s brand as well as support the launch of Symbol.
NEM managed to gain only 0.02% week-over-week. However, that price performance still exceeded BTC’s 12.96% loss and ETH’s 4.16% loss. XEM is currently trading for $0.226, which represents a price decrease of 9.59% when compared to the previous month’s value. At the time of writing, NEM is the 19th largest cryptocurrency by market cap, boasting a value of $2.083 billion.
XEM/USD technical analysis: all the gains eaten away after a strong pullback
XEM is currently trading within the long-term triangle formation it started forming in late December 2020. Its price is following the bottom triangle line, bouncing off of it and moving to the zone around $0.26 each time.
While XEM is far away from resolving the extended triangle formation, the formation’s bottom line is acting as its strongest (and closest) support level. Its upside, on the other hand, is guarded by many resistance levels, with its immediate major resistance level sitting at the $0.2595 mark.
XEM/USD daily chart
XEM’s RSI on the daily time-frame is currently in the middle of the value range, with its price sitting at the value of 51.03.
XEM/USD 1-hour chart
XEM’s hourly timeframe shows how the cryptocurrency exploded towards the upside, overextending and crashing back down each time. Its latest price peak is the $0.2577 level, which was reached earlier today. After XEM failed to break the $0.2595 Fib retracement, the price pulled back below the 78.6% Fib retracement as well as the 21-hour EMA.
After falling below the 21-hour EMA, XEM crashed heavily and reached as low as $0.2177, but managed to recover slightly. However, the aforementioned 21-hour MEA is now its major immediate resistance level.
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