NEM has a bearish short-term trading bias against Bitcoin, with price now trading below the XEM / BTC pair’s 200-period moving average
The XEM / BTC pair’s medium-term trading outlook has also turned bearish
Both the four-hour and daily time frames show bearish head and shoulders patterns
NEM / BTC Short-term price analysis
NEM has a bearish short-term trading bias against Bitcoin, with the XEM / BTC pair now trading below its 200-period moving average on the four-hour time frame.
The four-hour time frame is currently showing a large head and shoulders pattern, with sellers now testing the neckline of the bearish pattern.
Technical indicators on the four-hour time frame are currently mixed and providing no clear short-term trading signal.
Pattern Watch
Traders should note that the downside projection of the bearish head and shoulders pattern would take the XEM / BTC pair to a new 2019 trading low.
Relative Strength Index
The RSI indicator is bearish on the four-hour time frame and highlights that sellers are in control of the XEM / BTC pair.
MACD Indicator
The MACD indicator on the four-hour time frame is currently neutral and providing no clear trading signal.
Fundamental Analysis
NEM was able to recoup some of its losses during the first quarter of 2019, as the market responded to positive changes in the team and the overall strategy of the project.
However, after the release of the Catapult roadmap, the project has continued to trend down. Its short-term prospects will most likely depend on the overall market unless the team shows additional opportunities for the project to scale and increase adoption of its platform.
NEM / BTC Medium-term price analysis
NEM has a bearish medium-term trading bias against Bitcoin, with buyers unable to move the XEM / BTC pair above its trend defining 200-day moving average.
The daily time frame shows the presence of two bearish head and shoulders patterns. The XEM / BTC pair is currently trading below the neckline of the larger head and shoulders pattern, after bulls failed to sustain price above neckline resistance earlier this month.
Technical indicators on the daily time frame have turned bearish and continue to generate a sell signal.
Pattern Watch
Traders should note that the overall downside target of the larger head and shoulders pattern on the daily time frame would take the XEM / BTC pair to a new all-time trading low.
Relative Strength Index
The RSI indicator on the daily time frame is bearish and shows scope for further losses.
MACD Indicator
The MACD Indicator has turned bearish on the daily time, with the MACD signal line issuing a sell signal.
Fundamental Analysis
The medium-term prospects of the project will highly depend on the team’s ability to promote use cases for NEM. The launch of Catapult, which is planned for the end of Q3 – early Q4, could generate new interest in the project in the lead to the release.
Conclusion
NEM has an increasingly bearish outlook against Bitcoin, with both time horizons currently showing bearish head and shoulders patterns.
If bulls fail to take control of price-action in the near-term, the NEM / BTC pair is at serious risk of falling to a new all-time trading low.
We released a coin guide on NEM to get a quick understanding of the project.
We also analyzed the prospects of the project in our DARE.
NEM Chart
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