NEM’s XEM Technical Analysis – NEM’s XEM Breaking Resistance Barriers 08/03/2018
- NEM’s XEM fell 10.8% on Wednesday, following on from a 3.3% decline on Tuesday.
- Wednesday’s fall broke through major support levels of $0.31384 and $0.29768.
- NEM XEM’s first major resistance level of $0.35087 had been tested before the mid-afternoon tumble on Wednesday.
- NEM’S XEM has reversed Wednesday’s losses in the early part of today.
NEM’s XEM Price Resistance
The first half of the week spelled trouble for NEM, with NEM’s XEM falling from Monday’s $0.3754 high to a Wednesday intraday low $0.2739.
Wednesday’s losses alone amounted to 10.8%, with NEM’s XEM’s intraday low $0.27392 falling through the day’s first and second major support levels before ending the day at $0.2937.
The decline through the 2nd half of the day was attributed to a statement issued by the SEC on the need for cryptocurrency exchanges to register, raising concerns that more demands may be on the horizon.
Adding to the negative sentiment was concerns over Binance falling victim to a hack, though there remains uncertainty over whether those who have lost coins were a victim of a hack or something else.
Following yesterday’s slide, sentiment has shifted through the early part of the day, with NEM’s XEM up 13.04% to $0.33285 at the time of writing, breaking through its first major resistance level of $0.32761.
Having retraced back through the 62% FIB Retracement Level of $0.3366, with an intraday high $0.3468, we will expect some pullback from current levels, as investors look to lock in profits.
Any pullback through the 38.2% FIB Retracement Level of $0.3127 will likely see selling pressure build, with direction through the remainder of the day not only hinged on investor sentiment, but also on the news wires. We can expect the cryptomarket to be particularly sensitive to regulatory noise and the SEC is unlikely to be finished just yet.
For today’s first major support level of $0.26682 to be tested, NEM’s XEM would need to pull back through its 23.6% FIB Retracement Level of $0.2979, which is unlikely barring negative news hitting the wires.
The moves through Wednesday are yet another example of how investors can get caught out in the cryptomarket, with regulators around the world able to issue statements with very little forward guidance to warn investors in advance.
Support levels are of little comfort during such sell-offs, while FIB Retracement Levels and resistance levels are likely to have a more significant influence during the recovery.
NEM (XEM) Support and Resistence
- Major Support Level: $0.26682
- Major Resistance Level: $0.32761
- Fib 23.6% Retracement Level: $0.2979
- Fib 38% Retracement Level: $0.3127
- Fib 62% Retracement Level: $0.3366