XEMBTC fails to close above 50-day moving average
XEM/Bitcoin Index (XEMBTC) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
XEMBTC ended Saturday at 0.00000468 gaining BTC0.00000010 (2.18%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XEMBTC as at Aug 01, 2020):
Saturday's trading range has been BTC0.00000039 (8.52%), that's slightly above the last trading month's daily average range of BTC0.00000034. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for XEMBTC. Prices continued to consolidate within a tight trading range between 0.00000437 and 0.00000490 where it has been caught now for the whole last trading week.
Even with a weak opening the cryptocurrency managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
Prices are trading close to the key technical support level at 0.00000450 (S1). After spiking up to 0.00000490 during the day, NEM found resistance at the 50-day moving average at 0.00000484. After having been unable to move lower than 0.00000450 in the prior session, the market found buyers again around the same price level today at 0.00000451. The last time this happened on July 22nd, XEMBTC actually lost -2.62% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 0.00000450 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for XEM/BTC. Out of 796 times, XEMBTC closed lower 52.51% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.55% with an average market move of 0.67%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more