NEM recently broke below its range to signal that bears have won over, but it looks like there is some hesitation as price consolidates. Price recently formed lower highs and higher lows to create a symmetrical triangle on its 4-hour time frame.
A break below this consolidation could expose NEM to further declines, possibly lasting by the same height as the chart formation which spans .06 to 0.09. The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse.
Then again, the gap between the moving averages is narrowing as the 100 SMA turns higher. This suggests that a return in bullish momentum may be in the works, keeping the possibility of an upside break in play. In that case, NEM could find itself back inside the range and on its way to the top at 0.12.
RSI looks ready to head south so price might follow suit as sellers return. Stochastic is also pointing down to signal that sellers are regaining control as well.
However, NEM might find some support after its recent launch of “Blockchain for Europe” along with Ripple. Kristof Van de Reck, President Europe and co-founder, NEM Foundation said:
“We are delighted to be one of the founding members of Blockchain for Europe. There is a lack of unbiased information especially when it comes to the open and decentralised application of the technology. By joining forces with different stakeholders that have blockchain at the core of their business, we aim to provide insights which are not tailored to the agenda of specific organisations or stakeholders.”
NEM has also partnered with the United Arab Emirates’ Ministry of Community Development to help Dubai specifically achieve a “fully-digital government by 2021,” and become the world’s “first blockchain-powered city by 2020.” It has also entered into an agreement with KeySafeBank, a Singapore-based digital asset custodian, to use NEM technology to power the custody platform designed to keep cryptocurrencies securely stored.