NEM (XEM) Spikes As Coincheck Resumes Trading For First Time Since Hack
For the first time since the hacker’s attack deprived users of the Tokyo-based cryptocurrency exchange Coincheck of 500 million NEM tokens on January 26, 2018, the platform has resumed trading of this crypto asset.
The price of NEM jumped on the news to reach $0.114 (+25%) for the first time since the beginning of September 2018.
With the inflated daily trading volume reaching $54.6 million, the crypto’s highest since July 2018, NEM jumped two places to establish itself as a 15th cryptocurrency in the market, with the market capitalization of $1.3 billion. It has dropped to 16th behind NEO at press time.
The price flow with the most traded pair
Despite the newly enabled trading on Coincheck, Binance still processes almost half of the daily NEM trading volume, with close to $21 million (42.48%) through the XEM/BTC pair.
Therefore, we are going to present the movement across the last 24 hours on the XEM/BTC chart, which clearly shows that, it took an hour and a half for NEM’s price to rise by 25% on November 12th.
After the surge, NEM’s price took a few swings through a 16-hours-long symmetrical triangle, with main lows at 1613 and 1652 Satoshi and highs hitting 1762 and 1750 Satoshi marks, just to break out of the indecisive formation towards the north at 2:30 AM UTC.
As the rally went onward, it took another two short bursts to push the price towards the mentioned peak of $0.114, which happened exactly at 7:30 AM UTC on November 13th.
For those who are calculating prices in BTC, NEM’s skyrocketing was stopped just beneath the psychological limit of 2000 Satoshi, which is significant as that resistance is going to present the next barrier that NEM will have to break in order to beat the market’s bears.
There is still a possibility that NEM believers will be able to rally once again to break said resistance but it is also possible that the price of NEM will form a head and shoulders formation around the peak, which is considered to be a bearish reversal pattern.
As can be seen in the screenshots below, despite the mini-retracement that’s going on for the last few hours, all current price trends and moving averages are going in NEM’s favor as it has a record of being overbought throughout the last 24 hours.
However, all traders who want to get a deeper insight into the price movement will want to reflect on the current valuation of NEM through the overall movement of the market.
The stagnating market
Overall, due to the Coincheck’s announcement, NEM remains the best performer over the past few days among the top 15 cryptocurrencies in the market at the moment, with only Ripple (XRP) and Bitcoin Cash (BCH) moving showing some momentum.
Although the recent news took NEM towards the two-months-high price, investors have to be careful not to get caught in a bull-trap.
This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your own research and/or consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.