NEM (XEM) price analysis: deal news, bullish consolidation targets $0.10

Deal and adoption news has cemented a bullish breakout for XEM as near-term volume highs power it past resistance at $0.1104, for a reading of $0.110527.

A partnership with Timechain wallet has been received well by the community of the Malaysia/Singapore-based  project. The wallet makes use of the innovative abilities of NEM to work with other blockchains as side chains.

In addition to storage of multiple crypto assets, the wallet features trading. Timechain chief executive Louis Cleroux said of the move: “Wallets are becoming the centerpiece of blockchain mass adoption.”

He continued: “Timechain strive to offer the most simple solution to use blockchain and cryptocurrencies to its users. NEM technology is a front runner for digital assets management. We need to popularize this amazing tech to the market. Businesses will dramatically reduce their cost and greatly increase their distribution reach by using this solution.”

And this week it also emerged that the Singapore Blockchain Institute has decided to deploy the NEM blockchain to issue its electronic certificates. Alvin Chua, president of the Institute of Blockchain, as you might get expect, was equally glowing about NEM’s technology: “The mass adoption of blockchain starts with day to day usage of a reliable and credible blockchain protocol/platform such as NEM”

NEM did not fork in an attempt to reverse the token theft and instead introduced a tagging system to track the stolen tokens. NEM stopped tracking the XEM in March, saying that law enforcement now had all the information they needed.

XEM, the native token used to pay transaction fees is sitting fair for advance beyond $0.10.

XEM technical analysis

XEM chart

XEM price – 1-hour chart to 2 October 12:28 UTC+1. (courtesy TradingView). See live chart below

We believe NEM has been oversold, even by the standards of this nine-month bear market.

Japanese exchange Coincheck was hacked on 26 January 2018, leading to the loss of $523 million worth of XEM tokens, the native token of NEM.

The token’s all-time high was touched a couple of weeks before the hack, on 4 January, hitting $1.90.

The current price represents a depreciation of 94% to today’s price of $0.110430. That’s an even worse collapse than XRP and some of it is down to the hack, which incidentally had nothing to do with vulnerabilities on the NEW blockchain and everything to do with poor systems at Coincheck.

It transpired that Coincheck was not using a multisig wallet or cold storage.

Bullish consolidation

A fractal pattern sees a double head-and-shoulder pattern, beginning on the 20 September and repeating on the 26th, with the head claiming the high. It is the second head that provides are price target: $0.10124.

The second head-and-shoulder pattern, shown with the green flags, has much stronger volumes in the left shoulder and head, underlining bullish consolidation, albeit on a lower high.

Now XEM is pushing higher, nudging the 50-day simple moving average (50MA) – the magenta line. Trading volumes have slipped but with the Bollinger band widening, volatility is on the rise, with a bias to northerly travel.

As always in this market, keep an eye on BTC because where t goes these days, other tokens follow. Bitcoin remains rangebound at $6,571 and Ethereum on $228, holding onto gains from past days. Ripple is on $0.556, down 5% despite the afterglow of Bill Clinton speaking at it Swell event.

Ripple Labs, owner of the XRP token, today announced three more bank partnerships including Santander. Santander developed One Pay FX, a mobile app for cross-border payments built on RipplleNet.

Name Symbol Rank Price $ % ch 1h % ch 24h % ch 7d
NEM XEM 17 0.110658262 -1.92 12.3 19.18

 


About the Author

Pete Winston
I live and breathe crypto and have a small holding (BTC, ETH, EOS and XLM) that isn’t life-changing, so move along hackers! You can email me here: petewinston@coinintelnews.com

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