Q4 2019 NEM (XEM) Price Forecast: Technical And Fundamental Analysis
NEM is a transparent cryptocurrency running on a centralised blockchain. The cryptocurrency of NEM is XEM. The project started out on March 31, 2015. There was only one issuance of all 8,999,999,999 XEM; therefore, there is no mining NEM. Still, there is a system of incentivisation called harvesting. Basically, harvesting is the claiming of transaction fee for processing a transaction which is done by supernodes, and harvesters are supernode operators who take that reward. However, the fees are very small compared to Bitcoin because harvesting is based on proof of importance which consumes a hundred times less electricity than Bitcoin’s proof of work. For this reason, NEM transactions are extremely cheap.
However, NEM harvesting yields profit that is worth the effort because NEM’s blockchain can process 3,000 transactions per second with the block time being 1 minute. In order to become a NEM harvester, you need to have at least 10,000 vested XEM in your balance. NEM’s proof-of-importance algorithm selects the supernodes that should process transactions and harvest the block into which they are written. The importance rank of the supernodes is determined by the amount of XEM vested in it.
NEM was initially built as a permissioned, transparent network that should be highly scalable and have a high throughput rate. NEM transactions are almost as fast as a bank card transfer and show up in the receiver’s wallet in 6 seconds after being made by the sender and take around 20 seconds to confirm. This along with transaction transparency allows NEM to be regarded as a possible rival of traditional payment systems working with fiat money such as PayPal and Visa.
As of July 10, 2019, NEM occupies the 22nd position in the cryptocurrency ranking by market cap with around $807 million according to the CoinMarketCap website. At this time, the price of NEM is progressing in a sideways trend.
At the time of writing, XEM is being traded in a sideways channel on the daily timeframe roughly between $0.077 and $0.10 (Poloniex quote) per one XEM. Prior to that, XEM was in an uptrend that began on February 7, 2019 and ended on May 16, 2019 in a bullish candle with a high upper shadow.
As for the future pricing of this cryptocurrency, it is reasonable to assume that it has a good growth potential because, historically, XEM has been at two dollars’ mark in January 2018. Hence, presently, it costs less than 0.5% of its historical maximum price.
As for Q4 of 2019, the pricing of NEM greatly depends on the direction in which the sideways channel will be broken. Right now, we have numerous fluctuations from both its upper and lower borders. We also should not neglect the 20-period and 50-period Moving Averages because they can give us some notion of the direction in which the price might break through this sideways channel, too.
If we view it from the Elliott wave perspective we can distinctly see a five way pattern at the stage of the forming of its fourth wave.
The pattern of corrective waves in this case looks very logical and goes in line with the Elliott wave theory. It is very typical of corrective waves to alternate in their graphic patterns within one motive cycle. Very rarely we can observe two corrective waves of a similar model within one 5-wave cycle. Therefore, after the completion of the fourth corrective wave in this pattern we can reasonably await the fifth wave that should end this 5-wave cycle. However, we should be cautious about relying heavily on the Elliot wave principle as it works best for stocks and commodities and is not much recommended for analysing currency markets.
From the fundamental perspective, we should look on May 16 when NEM added 27% while Bitcoin lost 2.6%. On that day, there came through the news about Zeux a payment app adding NEM to its list of currencies which should allow all NEM owners pay with NEM at all stores through Apple Pay and Samsung Pay using Apple and Samsung smart mobile devices.
Another piece of news that came that day was the announcement by NEM about a coming launch of a new website of NEM Blockchain Center.
Those two announcements must have propelled NEM up high with a consolidation setting in immediately after that sharp surge.
As of now, a breakout above the daily resistance at $0.10 looks a more likely scenarios for NEM as outcome from the currently ongoing consolidation. Therefore, it will be rational to buy NEM at the lower region of this consolidation channel and above its upper border in the event of the price breaking through the resistance.
For Q4 2019, the suggested entry levels for long positions on NEM (XEM) are: