NEM has a bearish short-term trading bias, with the cryptocurrency trading well below its 200-period moving average on the four-hour time frame
The XEM / USD pair has now turned bearish over the medium-term
The daily time frame continues to show a large inverted head and shoulders pattern
NEM / USD Short-term price analysis
The XEM / USD pair has a bearish short-term trading bias, with the cryptocurrency now trading well below its 200-period moving average on the four-hour time frame.
The four-hour time frame is showing that the cryptocurrency is trapped within a descending price channel, with the XEM / USD pair slipping towards the lower end of the pattern.
Technical indicators on the four-hour time frame are bearish and continue to generate sell signals.
Pattern Watch
Traders should note that descending price channels are often considered to be bullish patterns.
Relative Strength Index
The RSI indicator is bearish on the four-hour time frame, although it is approaching oversold territory.
MACD Indicator
The MACD indicator on the four-hour time frame is bearish and continues to generate a sell signal.
NEM / USD Medium-term price analysis
NEM has a bearish medium-term trading outlook, with the cryptocurrency now trading below its trend defining 200-day moving average.
The daily time frame shows that a large inverted head and shoulders pattern has been created, with the XEM / USD pair gradually edging away from the neckline of the pattern.
Technical indicators on the daily time frame are also bearish and continue to highlight growing selling pressures over the medium-term.
Pattern Watch
Traders should note that the overall upside objective of the inverted head and shoulders pattern on the daily time frame would take the XEM / USD pair towards the August 6th swing-high.
Relative Strength Index
The RSI indicator on the daily time frame is bearish and shows scope for further downside.
MACD Indicator
The MACD Indicator is bearish on the daily time frame and continues to issue a sell signal.
Conclusion
NEM has now turned bearish over both time frames with the cryptocurrency eroding all of its former monthly trading gains.
If buyers can start to take back control of price-action, the bullish patterns on the four-hour and daily time frames suggest that the NEM / USD pair could still trade significantly higher over the medium-term.
Check out our coin guide for NEM to get a quick glance of the essentials.
For a deeper dive, our DARE for NEM is available.
NEM Chart
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