The bloodbath in the crypto market has seen XEM prices drop below crucial support
The NEM price is down a massive 17% in the past 24 hours and nearly 5% in the red in just the past hour. The cryptocurrency currently trades around $0.34 after breaking below a critical support line.
NEM’s downward trajectory mirrors the rest of the crypto market, led by Bitcoin’s continued bearish flip that now sees the top crypto trade at prices near $54,500. BTC/USD is down 4.4% on the day, while Ethereum (ETH) has dipped to support near $2,050.
Most altcoins are in red, except for Dogecoin (DOGE) which has surged over 18% in the past 24 hours after news of adoption by electronics retailer Newegg. The DOGE/USD pair is trading around $0.41 and is currently the 5th largest cryptocurrency by market cap behind XRP.
NEM price technical outlook
The 4-hour chart shows bears have had it their way with three successive red candles. This is a sell signal that suggests further downward action. Although bulls are attempting to buy the dip as shown by the long tail of the candlestick, the immediate outlook suggests that a path lower is more likely over the next several sessions.
As can be seen, XEM/USD has crossed below the 100 SMA to add to the bearish outlook. The sloping curves of the moving averages also reinforce the negative short-term perspective.
Also key is the RSI that has dipped below the midpoint, and the sharp descent of the bearish trend line, all of which suggests sellers are in charge. If the trend continues, it’s likely XEM/USD will decline to support at $0.31 and then $0.30
The sell-off might nonetheless provide a great opportunity for traders, allowing for increased buying. As the picture remains largely bearish, any immediate uptick could result in range-bound trading around $0.36-$0.38.
From here, bulls can look to rebound and seek to break above the descending trend line. Even then, bulls need to target and clear above the 100 SMA ($0.41) to flip the sentiment in their favour.