Key Highlights NEM’s XEM slid 10.8% on Wednesday, reversing most of Tuesday’s 13.6% gain, to end the day at $0.22765. An early intraday high $0.26561
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NEM’s XEM slid 10.8% on Wednesday, reversing most of Tuesday’s 13.6% gain, to end the day at $0.22765.
Market sentiment had seen a vast improvement on Tuesday, supporting a short-term bullish trend formed from Sunday’s swing lo $0.19571, but with risk aversion hitting the global financial markets through much of the day, a broad cryptomarket sell-off saw NEM’s XEM fall through the day’s first major support level of $0.2303 to an intraday low $0.21858.
Buyer appetite was lacking through most of the day, with NEM’s XEM falling through the day’s 23.6% FIB Retracement Level of $0.2483 and 38.2% FIB Retracement Level of $0.2382 before support kicked in at the day’s 62% FIB Retracement Level of $0.222.
A move below the 62% FIB Retracement Level supported a reversal of the short-term bullish trend, with the longer-term bearish trend formed back at the 21st March swing hi $0.28038 affirmed through the latter part of the day.
The move through the day was yet another case of the gains not being sizeable enough to convince investors that a more sustainable rally was on the cards, as uncertainty over the regulatory environment continues to hinder attempts by the bulls to restore confidence in the cryptomarket.
Following Wednesday’s slide, the cryptomarkets started on a choppy footing this morning, with NEM’s XEM falling to a morning low 0.21198, before moving back through to current levels, pushing back through the 23.6% FIB Retracement Level, with selling pressure sitting at the day’s 38.2% FIB Retracement Level of $0.2281.
A morning high $0.24804 failed to test the day’s first major resistance level while spiking through the day’s 38.2% FIB Retracement Level at the start of the day, the general pullback through the morning in line with the broader market ultimately pinning NEM’s XEM back.
For the day ahead, a move back through the day’s 38.2% FIB Retracement Level of 0.2281 would support a run at the day’s first major resistance level, though for a move through to $0.25 levels, market sentiment will need to improve through the middle part of the day.
Wednesday’s return to the longer term bearish trend will likely test investor appetite, investors likely to be sensitive to any negative moves through the morning, though we would expect NEM’s XEM to avoid testing sub-$0.20 support levels through the day.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.