Trade Recommendation: NEM
The NEM/Bitcoin (XEM/BTC) pair kicked its bull run into overdrive when it took out 0.0001 on January 3, 2018. The next day, it went as high as 0.000137 which is a growth of in 80.26% from the market’s low on January 3rd. Such a rapid increase in value in 48 hours prompted breakout buyers to take profits. The selling commenced as the market flashed extreme overbought readings.
Facing heavy selling pressure, the market broke below 0.0001 on January 5. The market capitulated on January 16 as volume spiked to 5,145.5 bitcoins when the average daily trading volume was less than 2,000 bitcoins. As a result, the market went as low as 0.00005 on that day before bulls stepped in to bring it back up to 0.000089. The pair is still correcting, but this dip is your chance to enter cheap.
Technical analysis show that the XEM/BTC pair is establishing support at 0.00006. The declining volume suggest that the corrective phase is almost up. In addition, the market is near oversold territory. These indicators hint that we’re close to seeing the market resume its climb.
The strategy is to buy as close to 0.00006 support as possible. Should bulls defend that level, the market will most likely attempt to breach resistance of 0.00012 within a month.
Daily Chart of NEM/Bitcoin on Poloniex
As of this writing, the NEM/Bitcoin pair is trading at 0.00006799 on Poloniex.
Disclaimer: The writer 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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