NEM’s XEM Technical Analysis – Looking to Test Resistance Levels – 11/04/18

Published: Apr 11, 2018, 07:42 UTC•3min read

In spite of Tuesday’s moves, the longer term bearish trend remained intact, with NEM’s XEM needing to move through the 38.2% FIB Retracement Level of $0.2544 to draw in sidelined investors and take a run at $0.30 levels last hit on 25th March.

Key Highlights

NEM’s XEM rallied 3.05% on Tuesday, reversing Monday’s 2.49% fall, to end the day at $0.23463
A morning intraday low $0.22098 managed to avoid the day’s first major support level of $0.2166, with the day’s first major resistance level untested in the afternoon recovery.
The day’s high $0.23679 tested investor sentiment at the 23.6% FIB Retracement Level of $0.232 and hold above the level through to the day’s end.

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NEM’s XEM Price Resistance

NEM’s XEM managed to reverse Monday’s sell-off on Tuesday, gaining 3.05% to end the day at $0.23463. Negative sentiment had continued through the early morning, leading to NEM’s XEM hitting an intraday low $0.22098 before sentiment across the broader market improved, supporting an afternoon rebound from the morning’s low to an intraday high $0.23679.

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While the high failed to test the day’s first major resistance level of $0.2433, a move through the 23.6% FIB Retracement Level of $0.232 and hold above the 23.6% FIB Retracement Level was positive for the day. The lack of selling pressure supports the general consensus that the market has bottomed out for now, as investors wait on for governments and regulators of key jurisdictions to roll out new regs for cryptomarkets.

With the morning’s $0.22098 low having avoided the day’s first major support level and the lack of a sell-off at the 23.6% FIB Retracement Level, it was a good day for XEM holders, particularly when considering that there were declines elsewhere.

At the time of writing, NEM’s XEM was down 1.04% at $0.23235, with NEM’s XEM moving through to an early morning $0.23736 high before going into reverse, to hit an intraday low $0.23052, pulling back from the 23.6% FIB Retracement Level of $0.232 before support kicked in.

The morning’s low managed to hold above the day’s first major support level of $0.2248, to avoid a more material pullback, with investors likely to consider the avoidance of major support levels as another sign of the broader market has bottomed out last week.

While the morning’s high $0.23736 failed to test the day’s first major resistance level of $0.2406, the retrace through the 23.6% FIB Retracement Level will be viewed as a positive by the bulls, supporting a middle of the day recovery and a run at $0.24 levels to test the day’s first major resistance level and 2^nd resistance level of $0.2466. Sentiment across the broader market will likely dictate whether there will be a material pullback at the resistance levels.

Failure to move through to $0.24 levels could see a pullback later in the day, though we will expect NEM’s XEM to avoid testing major support levels, barring particularly negative news hitting the wires in the afternoon.

XEM/USD 1H Chart