NEM Price Analysis: XEM Surges 20% as Parent Company Outlines Restructuring Plan to Avoid Bankruptcy
- XEM/USDT gained as much as 20% during trading on Saturday, following the details of NEM’s restructuring plan.
- NEM’s request to release 210 million XEM from its reserves was approved by key members of the community.
XEM: Recent Price Behavior
NEM’s price is rallying aggressively on Saturday; it jumped as much as 20% in the session. XEM/USDT is breaking out from a narrowing daily range block observed between 25th February to 8th March. Given how long the price was confined within this narrow structure, it’s not too surprising to see such an explosive move higher. The latest rocket north has seen the price recovering all losses encountered during the steep fall on 24th February – a drop that hit the entire cryptocurrency market. The bulls have since managed to return to pre-drop levels.
NEM Detail Restructuring Plan
The NEM Foundation is taking decent strides forward after detailing its restructuring blueprint. The Foundation obtained $8 million last month and has implemented cost-cutting measures by reducing staff. As covered by Hacked, NEM released a message to its community back on 31st January. The notice highlighted severe budgetary constraints and a plan to restructure the organization, which included cuts to existing staff. An update was also provided by Hacked when the NEM Foundation provided details on how it will keep afloat and its intentions of raising necessary finances.
It was reported that the request to release 210 million in XEM from the reserves received approval by key members of the community on 20th February. NEM released the details of this in a post published Friday. The organization outlined how the first installment of 25 million XEM would be spent.
On the back of the update, NEM Foundation president Alexandra Tinsman commented:
“I think this is a vote of confidence that the industry is moving forward and that we’re ready to pivot to a very new way of working. It’s in the best interest of companies to be fiscally responsible with their platform, their products and their teams. We need to be product-focused and that’s what we’ve done. This is a sign of good things to come.”
Technical Review – XEM/USDT
As noted earlier, pice action had been ranging between $0.043500 down to $0.039500, which was the case from 25th February to 8th March. Looking to the upside, XEM/USDT has already run into a barrier of resistance. It can be seen tracking from $0.050000 up to $0.0515000; this was the high on 24th February, where aggressive sellers hit the market. The price has not traded comfortably above this zone since 27th January.
Should the bulls manage to break this area down, then resistance heading into the $0.060000 region will be of interest. The noted area had previously acted as a decent territory for buyers coming in; however, when a breach below was observed, it proved to be a tricky zone of resistance.
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.
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