NEM [XEM] Outperforms as Bitcoin Consolidates

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NEM is recording its second significant increase today as it appreciates from lows yesterday near $0.095 to an intraday high of approximately $0.117 today, a 23% gain. This comes amid Bitcoin continuing to consolidate. Bitcoin’s volatility has reached yearly lows today as measured by the Average True Range.

Altcoins have followed the trend of Bitcoin for much of the year but have failed to hold their value as well as Bitcoin. The same can be said for NEM that traded at highs above $2 in January but has since dropped over 95%. NEM is a permissioned blockchain which leads many investors to question its true level of decentralization. The last two gains for the day are above the 20-day average daily volume whereas the trading volume in Bitcoin is significantly below its average daily volume. RSI is forming higher highs and higher lows, a signal of an uptrend. And also the MACD is crossing the centerline to the upside, a bullish signal.

XEM Daily Chart – Source: Tradingview.com

It is also important for traders to monitor the market leader Bitcoin with over 51% of the total market cap as it will have a significant impact on the direction of the altcoin market. The descending triangle pattern which has been forming in Bitcoin since January is currently approaching its end and many traders are debating whether a bullish or bearish breakout is set to occur. NEM is outperforming, and the technicals have a bullish setup. However, the outlook remains neutral as it remains highly dependent on the movements of Bitcoin.

Bitcoin Descending Triangle Pattern. Bitcoin Daily Chart – Source: Tradingview.com

Key Takeaways:

  • Significant appreciation over the past two days for NEM.
  • MACD crossing centerline to the upside, a bullish signal.
  • Many question the level of decentralization of the project as it functions with a permissioned blockchain.
  • Important for traders to monitor the descending triangle pattern occurring in Bitcoin.
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