• Home
  • Live Data
  • Events
Home Trading NEM / USD Technical Analysis: Regaining Trust

Shutterstock

NEM / USD Technical Analysis: Regaining Trust

-

  • NEM has a strong short-term bullish bias, with the cryptocurrency rising to a fresh monthly trading high
  • A bullish inverted head and shoulders pattern on the four-hour time frame has been triggered
  • The XEM / USD pair has now turned bullish over the medium-term

NEM / USD Short-term price analysis

 

The NEM / USD pair has a strong short-term bullish trading bias, with the cryptocurrency recently advancing to a new monthly trading high.

The large inverted head and shoulders pattern on the four-hour time frame has now been triggered after a brief period of consolidation around the neckline of the pattern.

Technical indicators on the four-hour time frame remain bullish and continue to generate a strong buy signal.

 

XEM / USD H4 Chart                                                                         (Source: TradingView)

 

Pattern Watch

Traders should note that the overall upside objective of the inverted head and shoulders pattern would take the XEM / USD pair towards the January 8th swing-high.

Relative Strength Index

The RSI indicator is bullish on the four-hour time frame, although it is approaching overbought conditions.

MACD Indicator

The MACD indicator on the four-hour time frame is bullish and continues to generate a strong buy signal.

Fundamental Analysis

The spike of positive sentiments towards NEM, is most likely connected with the fact that the project should announce the roadmap for Catapult, as was promised, by the end of Q1 2019. Catapult has been long awaited by the community and should bring additional functionality to the NEM blockchain including trusted decentralized swaps, multi-faceted transactions, multi-level multi-signature transactions, automatic fee payment and more.


NEM / USD Medium-term price analysis

 

NEM has a bullish medium-term trading bias, with the cryptocurrency moving closer to its trend defining 200-day moving average.

The daily time frame shows a bullish breakout from a descending price channel, which the cryptocurrency had been trapped inside since December of last year.

Technical indicators on the daily time frame are also bullish, although they appear more overstretched than the four-hour time frame.

 

XEM / USD Daily Chart                                                                         (Source: TradingView)

 

Pattern Watch

The overall upside objective of the descending price channel on the daily time frame would take the NEM / USD pair towards the November 29th swing-high.

Relative Strength Index

The RSI indicator on the daily time frame is bullish, although it has moved into overbought territory.

MACD Indicator

The MACD Indicator is bullish on the daily time frame, although bearish price divergence is starting to emerge.

Fundamental Analysis

NEM has been recovering from an extended bear streak since the new Foundation started restructuring project’s operations. Nevertheless, giving the previous failures of the project, the success of the new team is not guaranteed and there is a risk of potential sell off if the new team will not be able to deliver on the promises they have made.


NEM / USD Conclusion

NEM is growing increasingly bullish, with both time frames currently showing bullish patterns playing out to the upside.

If the XEM / USD pair can start to stabilize above its 200-day moving average, the cryptocurrency could easily reach the intended targets of the bullish patterns on both time horizons.

A quick coin guide to understand NEM is available here.

We also recently released our comprehensive DARE report on the project.

 

NEM Chart

Join the conversation on Telegram and Twitter!

 

Decentral Media, Inc., the publisher of Crypto Briefing, is not an investment advisor and does not offer or provide investment advice or other financial advice. Nothing on this website constitutes, or should be relied on as, investment advice or financial advice of any kind. Specifically, none of the information on this website constitutes, or should be relied on as, a suggestion, offer, or other solicitation to engage in, or refrain from engaging in, any purchase, sale, or any other any investment-related activity with respect to any transaction. You should never make an investment decision on an investment based solely on the information on our website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an investment.

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

Avatar
The Analyst Team
Crypto Briefing has become known for providing thoughtful and insightful diligence on early-stage blockchain ventures. Our reports are distributed globally, including via Binance Info. Almost 100 free, unpaid, and independent Digital Asset Reports and Evaluations and early-stage crypto assessments are available by clicking on the CB icon, right here.

JOIN OUR COMMUNITY!

Join the conversation on Telegram and Twitter!

7,631FollowersFollow
1,257SubscribersSubscribe

More News & Analysis

Get The Best Of Crypto Briefing!

Crypto news flashes, new DARE research, upcoming mainnet launches, market reports, and much more!

X
X