Crypto Update: DASH and NEM Ripe for Bottom Picking
Both DASH (DASH/USD) and NEM (XEM/USD) have been brutally clobbered this year. DASH lost 86.65% of its value from the all-time high of $1,625. Meanwhile, NEM got it worse as it shed 92.97% from the all-time high of $2.06278.
If these coins were stocks, no investor would dare touch them as such losses in six months almost certainly mean bankruptcy. However, the beauty of cryptocurrencies is that the mob determines their value. As history has shown, the mob can be fickle.
In this article, we look at how the mentality of the mob can shift and return DASH and NEM to their former glories.
Bulls Defending Key Support Level
Both DASH and XEM are respecting their firmest support levels. For DASH, that figure is $200 as this was the area where early market participants accumulated positions from June to August in 2017. The considerable buying activity during this period showed that investors believe DASH had potential for growth at that price level. We’re also seeing a rise in volume as DASH hovers slightly above $200 now.
Weekly chart of DASH
A similar thing can be said about XEM. Early market adopters invested heavily in the cryptocurrency in October 2017 at a price of $0.15. Now, we can observe a significant surge in volume as XEM drops to the same price level. This tells us that $0.15 is the area where demand exceeds supply.
Weekly chart of XEM
Indicators Flashing Bullish Signals
Oscillators such as the MACD and the RSI are signalling the end of the bear run. The daily chart of DASH reveals a bullish divergence on the MACD. On top of that, the MACD line has crossed above the signal line. Lastly, the RSI is bouncing from oversold territory. These indicators hint that bulls are gaining momentum.
Daily chart of DASH
Interestingly, XEM is flashing exact same signals. It has recently bounced from oversold conditions on the daily RSI. In addition, the MACD shows both a bullish divergence and a bullish cross. Again, these signals tell us that the cryptocurrency may be carving a bottom as bulls begin to accumulate positions.
Daily chart of XEM
Bollinger Bands Contracting
Finally, both pairs are trading in a very narrow range. From the last week of June until today, the trading range of DASH has gone from about a $10 range to less than $5 today. Similarly, the trading range of XEM has tightened from $0.01 on the final week of June to $0.00627 today.
The tight trading ranges suggest that both markets will very likely experience a price surge in the coming days. The contraction of the Bollinger bands is the icing on the cake for bottom pickers. They might not have to wait long for the markets to reward their investments.
DASH and NEM has suffered horribly this year but it appears that the worst is over. Both pairs respect key support levels. Moreover, indicators are flashing the exact same bullish signals. Lastly, Bollinger bands of both pairs are narrowing. Taken altogether, it appears that DASH and NEM are ripe for bottom picking.
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