Trade Recommendation: NEM
The NEM/Dollar (XEM/USD) pair is down by almost 90% year-to-date. The market has been in a downtrend since January 2018. However, recent market activity shows that the downtrend might be over soon.
Technical analysis show that XEM/USD appears to be bottoming out at $0.10. This price area is the market’s historic support level. It has been intact since July 2017. If bulls want to keep NEM stable, they have to keep defending this level. It looks like they got the memo.
Looking at the weekly chart, bulls are coming out in droves. Based on the chart, we can see that NEM printed record volume for three consecutive weeks. The meteoric rise in volume happened just as the market touched the $0.10 support. This tells us that the “smart money” is buying in bulk at the cheapest possible price.
Also, it is important to note that the recent breakouts in other altcoins such as Dogecoin (DOGE/BTC) and Lisk (LSK/BTC) have been catalyzed by heavy demand at key support areas. With heavy buying at historic support, it is very likely that NEM is following this trend.
The strategy is to buy the as close to $0.10 as possible. If NEM continues to stay above this level, it will attract more bottom fishers and bargain hunters. That should help send the market to our target of $0.20.
The process may take less than a month.
Weekly Chart of NEM/US Dollar on HITBTC
As of this writing, the NEM/US Dollar pair is trading at $0.11024 on HITBTC.
Summary of Strategy
Buy: As close to $0.10 as possible.
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.
Featured image courtesy of Shutterstock.