The NEM/US Dollar (XEM/USD) pair started its bull run when it surged well above $0.20 levels to $0.71536 on December 08, 2017. The price action indicated that the pair is done creating a base and ready to start ascending. This attracted momentum traders and trend followers who helped push the price to as high as $2.06278 on January 4, 2018. In less than a month, XEM/USD grew by a mind-boggling $931.39%.
At this point, the market showed overbought signals so it started correcting. It plunged to $0.55314 on January 16, 2018 before bottom pickers stepped in. They were able to generate some profits but the market posted a lower high of $1.20489 on January 20. This signalled that bulls were exhausted. The market has been in a freefall since, but this could be your chance to pick the bottom.
Technical analysis show that NEM/US Dollar has broken below $0.40 support on March 2. Below this level, the next firm support is $0.20, which is an important level for the market. It is the area where XEM/USD created a base that sustained its ascent to $2.06278. It is likely that the market will find the bottom here and shift into accumulation.
The strategy is to buy as close to $0.20 support as possible. If bulls preserve this support, the market will likely create a new base while range trading between $0.20 and $0.40. Sell immediately once the target is hit as it is unlikely that the market will breach the top end of the range in the first attempt. The process may take a month.
Daily Chart of XEM/US Dollar on HITBTC
As of this writing, the NEM/US Dollar pair is trading at $0.25023 on HITBTC.
Summary of Strategy
Buy: As close to $0.20 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.