Bitcoin
BTC$42 293.60

-2.46%

Ethereum
ETH$3 232.24

-4.11%

Binance Coin
BNB$472.69

-6.19%

Tether
USDT$1.000360

-0.01%

Cardano
ADA$1.49

6.13%

USD Coin
USDC$1.000202

-0.03%

NEM (XEM) Dubious Recovery After a Death Cross


March 2020

The 26th cryptocurrency has had a rough couple of weeks, just like the rest of the market, after taking a serious hit from the bears upon reaching the peak of the minor uptrend at $0.008. The downfall of XEM began with the inverted hammer pattern that formed on the daily time frame on February 12. The further price decline was quite easy to predict as the next move constituted the bearish engulfing candle that was substantiated by the formation of the notorious death cross, as the 50-day moving average penetrated the 200-day to the downside on February 15.

1-day XEM/USDT chart

What followed was the 37% price drop after a close at $0.067 on the said candle, at the latest stage of which NEM has briefly descended below the 200MA but found the support provided by the 50MA.

However, it’s far too early to tell whether the current action represents a recovery or just a retracement before a further move south. Here we can see how the price struggles to rise definitively above the long-term moving average, with the latest attempt being instantly negated by the bears. The candle that shows traders’ remorse, as well as the following one, tells us that there is still no consensus between the buyers and the sellers regarding the new price of NEM. Moreover, the last couple of days were characterized by the higher-than-average selling volume, which could force XEM below the 200MA yet again, which would result in another testing of the 50 MA at $0.41 - $0.42.

XEM looks bearish


The entire price movement since the correction appears to be forming the bearish flag pattern that points at the probable continuation of the downtrend on the daily time frame, instigated by the mentioned death cross.

If this scenario plays out, XEM would break through the 50MA and below $0.04, thus literally erasing all of its gains from the past couple of months. The bearish intentions of NEM are also encouraged by the unceasing panic across all markets - cryptocurrency and conventional alike - caused by the spread of coronavirus.

The described scenario could be canceled only if, in the next few days, the price establishes a foothold above the said moving averages and breach the depicted parallel channel to the upside. However, the fact that the Stochastic has fallen to its lowest level (4.41 on February 16), since February of last year could mean that XEM is on the verge of a solid upward maneuver that could even revive the uptrend structure.     

4-hour XEM/USDT chart

In the 4-hour time frame, we see what appears to be a fake golden cross that occurred on February 28, given that the price has so far failed to break through the pre-pattern resistance at $0.055 and shows the signs of increasing sell volume.

However, the appearance of the cross did manage to drag MACD from below the zero level to 0.001 for a while, though now it has already made a crossover to the downside, which means that XEM could well be pulled down below the 200MA to $0.045.

To summarize, NEM is currently at the crossroads, though most indicators show that the coin intends to dig even deeper. Watch for its movement around the moving averages to determine your current or future trading strategy involving XEM.

Author: Alex Paulson for Crypto-Rating.com

Related

NEM (XEM): The Buyers Are Flexing Their Muscles
NEM (XEM): The Buyers Are Flexing Their Muscles
NEM (XEM): The Correction is Gaining Momentum
NEM (XEM): The Correction is Gaining Momentum
NEM (XEM) Finally Comes to Life
NEM (XEM) Finally Comes to Life
NEM (XEM) Stays in a Dull Consolidation
NEM (XEM) Stays in a Dull Consolidation
XEM in January 2020: shot down at the takeoff
XEM in January 2020: shot down at the takeoff
What will happen to NEM's price
What will happen to NEM's price
NEM Price Prediction for November 2019
NEM Price Prediction for November 2019

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 73.6% 55 $42 293.60 -2.46% 1.21% $800 714 255 503 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 67.2% 67 $3 232.24 -4.11% 5.26% $385 279 069 584 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 72.4% 55 $472.69 -6.19% 11.02% $78 844 983 841 BNB 7 days price change
4 Tether (USDT) USDT Tether predictions 90.8% 1 $1.000360 -0.01% 0.02% $78 427 810 735 USDT 7 days price change
5 Cardano (ADA) ADA Cardano predictions 75.2% 53 $1.49 6.13% 31.68% $49 909 365 061 ADA 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 91.6% 1 $1.000202 -0.03% -0.05% $45 478 888 037 USDC 7 days price change
7 Solana (SOL) SOL Solana predictions 63.2% 78 $140.83 -6.42% 3.44% $44 241 286 623 SOL 7 days price change
8 XRP (XRP) XRP XRP predictions 68.4% 58 $0.756082 -3.37% 2.24% $36 037 225 283 XRP 7 days price change
9 Terra (LUNA) LUNA Terra predictions 68.8% 60 $79.34 -7.36% 10.24% $28 407 443 992 LUNA 7 days price change
10 Polkadot (DOT) DOT Polkadot predictions 72.4% 53 $25.91 -7.98% 8.72% $25 586 558 863 DOT 7 days price change
11 Dogecoin (DOGE) DOGE Dogecoin predictions 78% 46 $0.168465 -5.67% 15.84% $22 350 420 542 DOGE 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 66% 76 $87.33 -7.06% 2.85% $21 339 164 184 AVAX 7 days price change
13 Polygon (MATIC) MATIC Polygon predictions 74.4% 55 $2.25 -4.80% 9.82% $16 459 164 446 MATIC 7 days price change
14 SHIBA INU (SHIB) SHIB SHIBA INU predictions 70.4% 59 $0.000029 -6.41% 5.45% $15 767 908 019 SHIB 7 days price change
15 Binance USD (BUSD) BUSD Binance USD predictions 93.6% 1 $1.000009 0.08% -0.12% $14 447 326 438 BUSD 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.