NEM Price Analysis: XEM Regains Bullish Momentum amid Plan to Save the NEM Project

  • XEM/USDT has gained as much as 10% over the past two trading sessions.
  • The NEM Foundation and NEM Labs have put an action plan together to keep the project afloat.

XEM: Recent Price Behavior

XEM has picked up some upside momentum over the last couple of days, thanks to renewed optimism around the NEM Foundation. XEM/USDT rose to its highest levels seen in around a week, following a period of cooling given the heightened financial worries. The price has gained 10% from 12th February to the high print on today at $0.0413652. There is a heavily near-term supply area that the bulls must breakdown to see a more significant wave of buying pressure.

NEM is making a bold move with an action plan to tackle the financial worries for the organization. The start-up detailed a blueprint of action for the near-term, as the management team is keen to keep things running following recent financial scares. It does appear they will have to make some drastic cuts in the headcount, which will help them move forward. They have called for a POI, or “Proof of Importance” vote in support for a funding request.

Weekly Recap: Crypto Winter Continues as NEM Foundation Crumbles, Bitcoin Falls 7.6% in January

The NEM Foundation wants to join forces with NEM Labs to raise necessary financing and market their blockchain project developments. At the end of February, a large number of employees are going to be axed.  This collaborative arrangement will see them focusing on Catapult development, which is the driver in the improvement of speed and scalability of the network.

The joint public statement from the organizations noted:

“Both parties have their own scope, though we will be working towards the same objective. A promise to the community that our mission-critical priority is in the launch of Catapult. Both NEM Foundation and NEM Labs will work together to accomplish this as part of the same ecosystem.”

Technical Review – XEM/USDT

XEM/USDT daily chart.

As mentioned above, there is a near-term chunky barrier seen just ahead; this is tracking from the $0.0410000-$0.0420000 price range. XEM/USDT faltered here recently on 9th February; the bulls did not have enough momentum to break above. The rejection was also observed at the very start of the month, forcing the price to new lows down at $0.0341055. The price has not convincingly traded above this highlighted zone since 31st January.

Should the bulls have enough in their engines to force a breakout to the upside, then this could pave the way for another recent move north. The next area of interest for the bulls would likely be up at 30th January high area, $0.0470000-$0.0480000. These levels were seen before a significant wave of selling pressure had kicked in, as the price had dropped around 30% over seven days.

In terms of support, this is noted at $0.0377000 the 12th February low. Further south, daily support can be seen at $0.036700, if this fails then lastly the lows down at $0341055.

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.

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.