NEM Price Analysis: The Forgotten Token XEM Leaps For The Sky

  • NEM (XEM) made a large jump to the upside, with the price gaining some 20% over the past two days.
  • A new partnership announcement hit the social media space, coming via Portal Network’s Twitter account.

NEM (XEM) Spikes Higher

The NEM (XEM) price has observed much buying pressure after the upside momentum kicked in on Monday 1st October. The move is seemingly being attributed to a new partnership announcement picking up attention across social media. A tweet coming via Portal Network’s Twitter account, covering they will be building the dedicated NEM name service, seems to have been a big catalyst for price growth of NEM.

Partnership Announcements

The Portal Network and NEM have signed a strategic partnership agreement. This will be a collaboration to establish the blockchain name service standard, on top of the NEM blockchain. Portal Network further explained that the naming standard will become one of the essential elements for NEM to enhance the overall user experience.

Elsewhere, just last week a new partnership was announced between X Motions Pictures (XMP) and CopyrightBank – a copyright registration platform that is running on NEM. The partnership will involve XMP registering movies onto the NEM blockchain with the assistance of CopyrightBank.

What Is NEM?

NEM is one of the world’s largest blockchains, with its base token being XEM. It shares some similarities to Ethereum. The XEM will execute identical functions within the NEM blockchain, just like ETH does on Ethereum. In the future, other tokens could also be launched on NEM. NEM is currently the 17th largest cryptocurrency by market cap, which is seen at around $925 million.

Earlier this year in January, one of the biggest reported crypto theft took place. Japanese exchange Coincheck had $530 million worth of NEM stolen in a coordinated attack. After it was confirmed by the exchange, the XEM currency dropped around 65% over a 9-day period.

Since this took place, XEM is still seen down over 90%. The price was originally trading around $1.12, to be now seen at current levels of $0.11.

XEM/USD 65% drop

Technical Review

XEM/USD makes a decent break to the upside, moving to highest levels seen since 5th September. The price has been well-supported since 12th September, by a sturdy ascending trend line. The next major upside target likely to be tackled will be the 4th September highs, up at $0.1300, prior to the market sell-off. Should the bulls gather enough momentum to see a breakthrough, above this supply area, then eyes will be on $0.1450, 7th August high. Support in the near-term eyed at $0.1030, 50% Fibonacci. Further south, $0.0965, where the ascending trend line is tracking and in proximity to the 38.2% Fibonacci.

XEM/USD 4-hour chart

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.