Hello traders! During the past few months, we could see a substantial growth on many altcoins. But was it a beginning of a long term uptrend? From what it seems, Altcoins are struggling after the recent rally. First off, take a look at our recent LSK/BTC and BNB/BTC analysis. You should be able to see that there is not enough bull power in those Alts at the moment.
Today we will look at XEM/BTC pair on a Daily and 4H charts. Above is a daily chart where price managed to break above 200 Exponential Moving Average. But the breakout was shortlived and prie almost immediately pulled back. Currently, 200 EMA is acting as the resistance after prie rejected the 38.2% Fibonacci level at 621 Satoshis. At the same time on that corrective move up, NEM produced the spike above the 200 EMA and closed below it. Then price did attempt to close above the high produced on that spike, but yet again it failed. This could be proof of the weakness, resulting in the accumulation of the selling pressure.
On the 4H chart, the price remains below the resistance as well as 200 EMA. At the same time, XEM/BTC failed to test the uptrend trendline, which usually is a sign on an incoming trendline break. While the price is below the 621 Satoshis resistance, the probability is in favor of the downside move. Pair can drop towards one of the Fibonacci support levels, either 76.4% at 488 Satoshis, or 88.6% at 445 Satoshis. All-in-all, there is massive support are between 430-445, and this could be the are of demand for XEM/BTC.
Bias: Bearish while below 621 Satoshis
Potential Resistance Zone: 600-630 Satoshis
Potential Targets: 488, 445, 431 Satoshis
Have a profitable trading!