NEM (NEM/USD) Analysis January 17, 2018
NEM the platform is turning out to be a coveted product judging from price action. The evidence is clear now that everyone can see those streams of higher highs following a major break out a couple of weeks back.
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Today, let’s focus on price action and volatility. By this realignment, we shall see that last week’s price action was indeed bearish but in the midst of all these lower lows in lower time frames, there was a little bit of buy pressure at the end of that dip. Where you may ask? Notice the long lower wick? Yes, that is buy pressure building up. You can check it out in lower time frames if you need to.
That is not all, last week’s candlestick managed to close below the upper BB and that is important. Often over-valuations would be apparent if more than 90% of the candlestick forms AND close above the upper BB.
This set up in my opinion might end up as a double bar bear reversal pattern and that is why this week’s close is important for both buyers and sellers.
Zooming out and the daily chart’s middle BB will take precedence in my analysis.
Notice that after yesterday’s pin bar, bear pressure spilled over and what we are seeing is lower lows reacting at $1.15. As always, it would be ideal if prices realign and close above the middle BB but the fact that a double bar reversal is clear in the weekly chart may end up pushing prices even lower today.
I really think consolidation is the common theme in almost all alt coins. In this time frame, the main support line at $1.15 is important. For bears to take over, prices must burst through $1.15 and break away from this consolidation.