NEM Price Analysis XEM / USD: Stretched Bullish Breakout
Catapult news done has wonders for NEM, though there are clear signs of an impending correction.
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- NEM has a bullish short-term trading bias, with the cryptocurrency advancing to a new 2019 trading high
- The XEM / USD pair has an increasingly bullish medium-term trading outlook
- The daily time frame now shows that an even larger inverted head and shoulders pattern has now been created
NEM / USD Short-term price analysis
The XEM / USD pair has a bullish short-term trading bias, with the cryptocurrency advancing to its highest trading level since November 2018.
The four-hour time frame is showing that an inverted head and shoulders pattern has been triggered, with the bullish pattern already reaching its full upside projection.
Technical indicators on the four-hour time frame remain bullish and continue to generate buy signals.XEM / USD H4 Chart by TradingView
Traders should note that the XEM / USD pair may start to correct lower now that the inverted head and shoulders pattern has reached its upside objective.
Relative Strength Index
The RSI indicator is bullish on the four-hour time frame, although it is now trading in overbought territory.
The MACD indicator on the four-hour time frame is bullish, with both the MACD signal line and histogram issuing buy signals.
XEM has surged over 50% in recent 24 hours. Although the overall bullish market trend is probably the main driver behind XEM growth, the project has also released Catapult feature updates on namespaces and mosaics that might have also supported its upwards momentum. These changes will make NEM more convenient and user-friendly.
NEM / USD Medium-term price analysis
NEM has an increasingly bullish medium-term outlook, with the cryptocurrency now trading well above its trend defining 200-day moving average.
The daily time frame shows that a smaller inverted head and shoulders pattern has been triggered, while the recent spike higher in the XEM / USD pair has created a much larger inverted head and shoulders pattern.
Technical indicators on the daily time frame are also bullish and continue to generate strong buy signals.XEM / USD Daily Chart by TradingView
Traders should note that the June 11th, 2018 swing high is the overall upside target of the larger inverted head and shoulders pattern on the daily time frame.
Relative Strength Index
The RSI indicator on the daily time frame is bullish, although it has now moved into overbought territory.
The MACD Indicator is bullish on the daily time frame and continues to issue a strong buy signal.
The medium-term prospects for the project will highly depend on its ability to successfully launch Catapult, and make use of its technology. Although the overall market sentiments are bullish, NEM adoption levels remain its main point of concern.
NEM has performed a strong bullish breakout over both time frames, with the XEM / USD pair giving back a marginal portion of its earlier gains.
The newly created inverted head and shoulders pattern on the daily time frame highlights that the cryptocurrency can still trade much higher over the medium-term.
“XEM has long been regarded as a sleeping giant in the market, therefore this significant surge does not come as a surprise. NEM currently holds 18th place in the cryptocurrency rating with a value of more than $850 million — an increase of almost 50% overnight.
NEM’s upcoming tech roadmap has gained public attention this year with major technology releases on the horizon and an increased focus on security tokens.
Its foundation restructure and re-focus is currently taking effect, and the launch of NEM’s venture capital arm, NEM Ventures, is further supporting the NEM ecosystem. I believe interest and trust have peaked as a result of these significant changes and our longevity as a chain has been proven, supported by strong market fundamentals.”
Check out our coin guide for NEM to get a quick glance of the essentials.
For a deeper dive, our DARE for NEM is available.