NEM (XEM) posted double-digit gains in the past 24 hours as it successfully completed the 400 transactions per second stress test on its testnet. What should you expect next, and should you buy some XEM now?
Fundamental analysis: 400tps stress test complete on NEM’s testnet
New Economy Movement (or NEM for short), is an ecosystem of blockchain-based platforms that aim to provide solutions for businesses and individuals. NEM’s native cryptocurrency unit is called XEM. The cryptocurrency was originally created by three unknown developers only known by their pseudonyms: BloodyRookie, Gimreand, and Jaguar0625 .
NEM’s current price increase can be attributed to the successful 400 transactions per second stress test. The test was conducted on the NEM testnet, and showed extremely positive results:
— NEM (@NEMofficial) February 19, 2021
XEM posted week-over-week gains of 23.43%, outperforming both BTC‘s week-over-week gains of 14.95% and ETH‘s 8.41% gain. NEM is currently the 22nd-largest cryptocurrency by market cap, boasting a value of $4.43billion.
At the time of writing, XEM is trading for $0.49, which represents a price increase of 107.98% when compared to the previous month’s value.
XEM/USD technical analysis: XEM poised to break out of its mini-triangle formation
XEM has been in an uptrend ever since 1 February, with its current push towards the upside coming as a result of the cryptocurrency finding support in the 21-day EMA. After a day of struggle, XEM pushed above the $0.44 resistance level and headed towards $0.5.
While XEM has a long way to go if it wants to beat its all-time high of $1.77 recorded in January 2018, the cryptocurrency is getting closer each day. However, the main difference between 2018 and now are NEM’s fundamentals, which have improved exponentially.
XEM/USD daily chart
XEM’s RSI on the daily time-frame has reentered the overbought territory, with its current value currently sitting at 80.66.
XEM/USD 1-hour chart
Zooming in to the hourly time-frame, we can see XEM’s volume skyrocketing as soon as news of a successful stress test came out. Many analysts have recognized a small triangle formation on the hourly chart. The cryptocurrency is, due to the positive news, more likely to push above the triangle formation than to retrace.
However, in case it does retrace, XEM faces support levels at the 21-hour EMA as well as the $0.44 level.
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