NEM price analysis: XEM dips hard as it breaks the triangle formation

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NEM (XEM) has dipped close to 20% on the day, making it the worst-performing cryptocurrency in the market cap top20. What’s the reason for the dip, and should you consider buying some XEM now?

Fundamental analysis: NEM’s solid fundamentals currently not affecting the market

NEM has had a bad trading session today as bears took over the market and brought its price down close to 20% from the value it had yesterday. This sudden dip came as a result of a technical formation, and had close to nothing with NEM’s fundamentals.

In fact, NEM’s fundamentals are extremely positive as the team behind it constantly strives towards creating new partnerships. Just two days ago, on 8 March, NEM announced a strategic partnership with Staked. This partnership would expand staking access to US institutions, exchanges, and high net-worth individuals.

XEM posted week-over-week losses of 27.95%, heavily underperforming both BTC‘s week-over-week gain of 10.49% and ETH‘s 13.47% gain. NEM is currently the 18th-largest cryptocurrency by market cap, boasting a value of $5.20 billion.

At the time of writing, XEM is trading for $0.59, which represents a price increase of 48.19% when compared to the previous month’s value.

XEM/USD technical analysis: XEM breaks the triangle formation to the downside

XEM has been trading within a triangle formation ever since 3 March, when its price reached past $0.8. However, today’s trading session got taken over by XEM bears that broke the triangle formation down. This caused its price to drop from $0.7 all the way down to $0.53 before recovering and finding support.

XEM/USD 4-hour chartXEM/USD 4-hour chart

XEM is currently trading just above its $0.585 support level, which held up nicely to the bear pressure. However, if the strong volume continues, this level may fall as well. XEM’s RSI on the 4-hour chart has dipped into the oversold territory, with its value sitting at 28.55.

XEM/USD 1-hour chartXEM/USD 1-hour chart

Taking a look at the hourly time-frame, we can see exactly how XEM dropped to its recent lows, as well as how it recovered to the levels it is at now. The cryptocurrency is now trading within a narrow range, bound by the zone between $0.577 and $0.585 to the downside and the $0.61 resistance level.

Even though its fundamentals are quite solid, XEM has a stronger chance to continue its path down, simply due to the amount of resistance present in the $0.61 level and the 21-hour and 50-hour EMAs. However, this might be a good time to value-invest into this project, as its current price is (according to numerous analysts) not matching its fundamental improvements.

The post NEM price analysis: XEM dips hard as it breaks the triangle formation appeared first on Invezz.

Publication date: 
03/10/2021 - 19:26
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.