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XEM Technical Analysis: Buyers Rest After Shattering $0.50 

cryptoknowmics.com 14 May 2022 10:59, UTC
Reading time: ~2 m

XEM price action displays a retest of $0.50 breakout with a Doji candle forming in the daily chart. Should you expect a post-retest reversal to reach $0.10? Key technical points:

  • The XEM prices grew by 17.96% last day.
  • The K and D lines start a new bull cycle.
  • The 24-hour trading volume of NEM is $63.78 Million, indicating a 45% hike. 

Past Performance of XEM

With the start of April 2022, bears overtook XEM prices' trend control, resulting in the downside breakout of a consolidation zone above $0.10. Then, with the formation of three black crows or three consecutive bearish candles, the downtrend consolidates at $0.09, as we mentioned in our previous article, before succumbing to the recent market correction.  The downfall accounts for a 70% decrease in 40 days and brings market value to $0.03, but the morning star pattern with a bullish engulfing candle accounting for a 38% jump retakes $0.50. TradingView Chart Source-Tradingview

XEM Technical Analysis 

As we can notice in the XEM/USD technical chart, the freshly bullish candles face higher price opposition above $0.50, resulting in a long-wick formation. Hence, the chances of failure increase which may shortly drive the prices under $0.50. The falling trend of the crucial daily EMAs while maintaining a bearish alignment displays the long-term correction phase. Hence, the EMAs will provide dynamic resistance to bullish growth. The RSI slope surpasses the 14-day average after exiting the oversold zone but leads into a sideways trend. Furthermore, the Stochastic RSI displays a new bull cycle in action as the K and D lines start to rise in the neutral territory. Therefore, the momentum indicators show a power transition to the bullish side and suggest a post-retest reversal. In short, the XEM technical analysis forecasts an uptrend continuation to the $0.10 mark.

Upcoming Trend

A post-retest reversal will drive the uptrend to the $0.10 mark if the trading volume continues to support the XEM uptrend. However, a failure to sustain above the $0.050 will restart the downtrend to $0.035. Support Levels: $0.035 and $0.025 Resistance Levels: $0.071 and $0.10

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