NEM’s XEM Technical Analysis – Testing Support Levels Again 04/03/2018

Bob Mason

Updated Sun, Mar 4, 2018, 1:39 AM

Key Highlights

NEM’s XEM fell by 4.28% on Saturday, following on from a 3.49% fall on Friday, to end the day at $0.36472.
NEM’s XEM has seen its bearish trend persist since a mid-February $0.6515 high, which has been in contrast to some of the crypto majors that have settled in recent weeks.
For the week, Monday through to Saturday’s close, NEM’s XEM was down 5.87%, with the Friday and Saturday’s declines doing much of the damage.

NEM’s XEM Price Support

NEM’s XEM managed to test its first major support level of $0.402 on Saturday, with an intraday high $0.407, before resuming its downward trend, with breaches of major resistance levels seeing investors quick to hit the sell button and wait for a pullback to support levels before jumping back in.

Saturday’s intraday low $0.3555 fell through its first major support level of $0.36678, whilst managing to avoid the second support level of $0.35173, though the negative for the day was XEM’s sub-$0.36678 close for the day that has contributed to a continued decline through the early hours of this morning.

At the time of writing, NEM’s XEM was down 5.14% to $0.3477, sitting tight on its first major support level of $0.34647.

Declines have been broad-based across the major cryptocurrencies this morning, with Stellar Lumen and Ripple the only two majors sitting in positive territory at the time if writing.

The good news, however, is that there has been a shift in sentiment through the middle part of the morning, with Bitcoin and some of the other majors coming off intraday lows, which should provide support to the broader market in the middle part of the day.

For NEM’s XEM, while its first major resistance level sits at a distant $0.392, a move back through to its 23.6% FIB Retracement Level of $0.3579 will be XEM’s first test of the day. Sufficient support at this level should see XEM make a move through its intraday high $0.3683, hit at the start of the day and move through to its 38.2% FIB Retracement Level of $0.3707.

Whether XEM will have enough legs to make a run towards its first major resistance level remains to be seen and much will depend on investor sentiment through the middle of the day, with investors still wary of the possibility of negative news hitting the wires at the start of the week.

Bitcoin will likely be taken as the barometer to investor sentiment in the last part of the weekend, with the gains in Ripple and Stellar’s Lumen unlikely to have a material influence on the broader market.