NEM’s XEM Technical Analysis – Bulls on the Move – 28/03/18

Key Highlights

• NEM’s XEM slid 6.95% on Tuesday, following Monday’s 8.22% tumble.
• A bearish trend was formed from last Tuesday’s swing hi $0.34927 and remains intact through to this morning.
• Support levels were tested through the day on Tuesday, while major resistance levels were left untested, as the NEM’s XEM and the broader market saw little upside on the day.
• The bearish trend remains supported by NEM XEM’s pullbacks at key resistance levels in recent days.

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NEM’s XEM Price Resistance

It’s been a bad run for the cryptocurrencies of late and NEM’s XEM was unable to break free of the broad market slide on Tuesday, falling 6.95% off the back of Monday’s 8.22% slide, to an end of the day $0.24444.

The bearish trend for NEM’s XEM started earlier than most, with last week’s Tuesday swing hi $0.34927 moving through to Monday’s swing to $0.235.

Moves through Tuesday provided little evidence of an imminent shift in the resilient bearish trend formed, with the day’s intraday high $0.26584, struck at the start of the day, falling short of the day’s first major resistance level of $0.28409, while testing investor sentiment at the day’s 23.6% FIB Retracement Level of $0.2619. Negative sentiment across the cryptomarket ultimately led to the reversal from the day’s high, with NEM’s XEM unable to move back through to the day’s 23.6% FIB Retracement Level later in the day, as the bears took control.

An intraday low $0.2406 slipped through the day’s first major support level of $0.2448, though with heavy declines having been seen through the week, there was plenty of support at $0.24 to avoid a pullback to sub-$0.24 levels on the day.

A combined effect of Twitter and general concern over the crypto regulatory landscape ultimately led to the bearish trend, the degree of uncertainty on the higher side in the wake of the G20 Summit that also resulted in the promise of a rollout of new regs this summer.

At the time of writing NEM’s XEM was up 1.83% to $0.24923, with the morning’s low $0.2414 steering clear of the day’s first major support level of $0.23475, while the day’s $0.25424 high managed to come within touching distance of the day’s first major resistance level of $0.25999.

NEM’s XEM has taken a hammering over the last week, the swing hi $0.34927 an indication of just how far south XEM has moved in just a week.

This morning’s move certainly provides some much-needed respite, but for a bearish trend reversal to really kick in, a move through the day’s 23.6% FIB Retracement Level of 0.2663 would be needed to support a run back up to $0.30 levels.

With the day’s first major resistance level in the way, the broader market sentiment will need to remain positive and that’s going to need the news wires to remain relatively quiet through the day, though even then, a sustainable rally is likely to face investors looking to lock in profits later in the day, fear of something negative hitting the news wires always there for investors to fret over.

Looking at the Technical Indicators

• Major Support Level: $0.23475
• Major Resistance Level: $0.25999
• Fib 23.6% Retracement Level: $0.2663
• Fib 38% Retracement Level: $0.2821
• Fib 62% Retracement Level: $0.3078