The New Economy Movement (NEM)’s platform token XEM surged 10 percent against the dollar on Monday, rising from 0.0974-fiat to 0.1046-fiat.
The XEM/USD formed a straightforward uptrend while attempting to retest the high from Sep 6 correction action. The price action corrected towards 1.000-fiat later as a part of its pullback action. The downside momentum is still fresh and is looking to establish a floor. As it does, a near-term ascending trendline could influence the pair to continue its uptrend by forming bullish poles and pennants consecutively. A breaking of a strong resistance area near 0.1091-fiat could unhook a potential upside action towards 0.1121-fiat. Thus, a bounce back from the trendline could open near-term long opportunities, considering the risks are taken care of by opening stop loss positions at a considerably opposite direction of the trade.
A break below the ascending trendline, on the other hand, it could bring XEM/USD into a free-fall towards 0.0966-fiat, followed by 0.0947-fiat, the intraday low and possibly the only moderate support level on a downside action.
The NEM Foundation has signed a Memorandum-of-Understanding (MoU) with the United Arab Emirates’ Ministry of Community Development (MOCD). The cooperation pact enables NEM to offer consultation services to MOCD on their future blockchain projects. The agreement also allows NEM to share valuable information on its blockchain research and development on various applications that could be integrated into UAE’s information technology systems.
The UAE aims to become a fully digital government by 2019.
The NEM Foundation is also launching new blockchain hubs in Melbourne and Vietnam to expand its research and development operations. The foundation has also reached an agreement with a Las Vegas Strip called Kind Heaven to become their blockchain partner.
The bullish adoption has led to XEM to two more exchanges in the recent times. BitPanda, a European crypto exchange, will list XEM against cryptocurrencies like Bitcoin, Ethereum, IOTA, and Ripple while improving the token’s liquidity against the fiat currencies on its trading platform.
Kuna Exchange, a Ukraine-based crypto exchange, is also listing XEM-to-crypto and XEM-to-fiat pairs on its trading platform, allowing users to directly exchange XEM token with Ukrainian Hyrvnia.
As seen in the case of many cryptocurrencies, the uptrend could also be a false bull action driven by traders with large hands of XEM tokens. It is recommended for retail traders to wait for a floor test before approving any long action trades.
Featured Image from Shutterstock. Charts from TradingView.