NEM, the New Economy Movement peer-to-peer blockchain platform, operates using its native XEM token and is most popular in South East Asia.From January 2017 to January 2018, during the most massive bull run in the history of cryptocurrency, NEM saw its token price blast off from just one-third of a cent all the way to closing a new all-time high of $1.90 per token — a gain of 60,000 percent. Since peaking at the beginning of 2018, NEM — along with the rest of the altcoin market — has taken a beating. The price per token at the time of writing is hovering in the neighborhood of $0.08, making for a loss this year of 96 percent from its all-time high. NEM is currently ranked 15th in terms of total market cap.
Stochastic RSILooking at the three-day and two-week Stochastic Relative Strength Indexes (RSI), we can see a recent bounce off of the mid-line, perhaps to return back to the 80-100 range. A bounce up cannot be confirmed yet. However, and is more likely to return down to low ranges after reaching 74.0 earlier this month — the highest RSI this year since touching 100.0 at the beginning of 2018.
Ready To Blow?After taking huge losses since its January 2018 all-time high, the price sank to the $0.10 mark, where it stagnated and traded sideways throughout most of August through October — validating the level as a strong support and potential resistance. Since Bitcoin’s most recent decline, however, we have seen NEM continue to sink below the support — unable to escape the massive descending trend line. One should be extra cautious in entering a position in the current bear market. Below the $0.10 support, there is not much in the way of a safety net, as the next rung down could put the price in the area of just $0.01. If NEM is able to regain stable ground above the $0.10 mark and establish itself outside of a descending trend, there is a chance of attacking the $0.18 to $0.20 level. However, considering the Stochastic RSI and the declining Bitcoin price, it is entirely possible that NEM will continue to bleed out enough to retest the $0.01 support. Investors may want to wait for confirmation of movement in either direction before deciding to enter a position.
Do you think NEM (XEM) will be able to hold on near the $0.10 level? Will we see a new all-time high in 2019? Let us know your thoughts in the comments below! Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does hold NEM (XEM).
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