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NEM Breakout Analysis – XEM Pumps +57.73% in a Week by Breaking Falling Wedge Pattern
NEM was squeezing inside the falling wedge pattern on a 1-day candle chart, it just went up over +57% in the last 7 days. Let’s take a quick look at NEM, price analysis, and possible reasons for the recent breakout.
What is NEM?
NEM is a cryptocurrency and blockchain platform for smart digital assets. The main new feature in NEM includes Proof of Importance (POI), a new consensus algorithm, and a smart asset system.
NEM Quick Stats
| SYMBOL: | XEM |
| Global rank: | 20 |
| Market cap: | $2,390,016,420 AUD |
| Current price: | $0.2655 AUD |
| All time high price: | $2.85 AUD |
| 1 day: | +27.4% |
| 7 day: | +57.73% |
| 1 year: | +452.58% |
NEM Price Analysis
At the time of writing, NEM is ranked 20th cryptocurrency globally and the current price is $0.2655 AUD. This is a +57.73% increase since 19 November 2020 (7 days ago) as shown in the chart below.
After looking at the above 1-day candle chart, we can clearly see that NEM was trading inside the falling wedge pattern on XEM/BTC pair. The first resistance was on the $0.1756 AUD price level which NEM broke with a strong bullish trend buying volume and is now heading towards the next resistance at $0.2755 AUD & $0.3155 AUD respectively.
“The falling wedge pattern is a continuation pattern formed when price bounces between two downward slopings, converging trendlines. It is considered a bullish chart formation but can indicate both reversal and continuation patterns – depending on where it appears in the trend”
If we zoom out and take a look at the price over the past few days or so, we can see the recent breakout more clearly, the line is almost vertical which looks insane.
What do the Technical indicators say?
The NEM XEM TradingView indicators (on the 1 day) mainly indicate NEM as a buy, except the Oscillators which indicate NEM as a neutral.
So Why did NEM Breakout?
The recent rise in Bitcoin over 100% since the halving in May and then the suggested start of the Altcoin season could have contributed to the recent breakout. Another reason could be the whales, secretly stacking up NEM to their portfolio for this Altcoin rally. It could also be contributed to some of the recent news for the upcoming Mainnet Launch of NEM and of course, they are giving 30% off on BlackFriday.
Recent NEM News & Events:
- 30 October 2020 – October Dev Update
- 17 December 2020 – Mainnet Launch
- 15 December 2020 – XYM Snapshot
- 30 November 2020 – Symbol Release
Where to Buy or Trade NEM XEM?
NEM has the highest liquidity on Binance Exchange so that would help for trading NEM/USDT or NEM/BTC pairs. However, if you’re just looking at buying some quick and hodling then Swyftx Exchange is a popular choice in Australia.
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