The rains finally came for the crypto market, with every coin on the board soaking up the much-needed support that came from the bullish rally we’ve all been enjoying over the past few days.
Out of all the alt-coins that have managed to hold onto their gains today as the downpour subsided, we can see that NEM stands out as the top performer amongst its fellow top 20 projects - still up nearly 5% and looking strong to continue its uptrend.
Support continues to flow largely from Japanese and South Korean investors, accounting for more than 50% of NEM trades today, against their respective JPY and KRW currencies.
After suffering catastrophic losses from the Coincheck hack, where over $500 million worth of XEM tokens were stolen due to the exchange’s poor security, NEM has struggled to regain composure in the market despite there being zero flaws in the project’s blockchain.
This recent surge may just provide the support NEM needs to relaunch itself back into the top 10, with Dash and Monero only narrowly out in front.
NEM (XEM) In The Short Term
Looking at the current uptrend over 4hr candles, we can see a strong rising support (lighter blue) beneath the price action along with a steeper (lightest blue) support line created by the latest bullish rally.
We can use these trend lines to give us an indication of whether the XEM support is building or starting to tire.
If the candles dip and hold below the steeper line then we can assume that the opportunity for an early breakout has failed. If the candles fall even further, below the secondary support, then it’s likely we’d see a price reversal that retraces back down to the base support level (dark blue) at 2,800 Sats
At the present time, MACD indicator is looking to converge above the signal line which tells us positive momentum is gaining behind XEM. We’d like to see the faster moving average line (blue) continue to stay above the slower average line (red) to confirm a continuation.
RSI is also uptrending well and moving into the upper quartile of the channel.
We’d like to see an opening price target for this bull run retrace back to the 0.236 fib level at 4,000 Sats before expecting a correction.
Other key resistance levels can be found at 5,000 Sats and the 0.382 fib level at 6,000 Sats.
NEM (XEM) In The (Very) Long Term
While things may be looking good for NEM in an intraday, short-term, perspective if we take a look at the price performance over a much broader time frame, we can see a promising, albeit slim pattern taking shape.
By connecting the highest highs and the lowest lows of the two huge swings in NEM’s price action, we can see the potential for a bullish pennant forming.
To confirm that the early pattern is working we would now need to see XEM retrace back to 0.236 fib level at 10,7401 Sats in the next spike, to form wave (1), before tanking back down to the uptrending support around 4,500 Sats.
Wave (2) should peak around 9,000 Sats with a correction down at the 0.618 fib level at 5,500 Sats.
Then up to 8,850 Sats for wave (3) and back down to the 0.5 fib level at 7,000 Sats before edging towards the breakout point.
Judging by this model the projected consolidation date for the breakout is set around June 2020, as the price action overcomes resistance at the 0.382 fib level, after having tested it unsuccessfully in wave (4).
A breakout back up to the all-time high at 12,000 Sats would then be anticipated, before support is opposed.
This article appeared first on Cryptovest
