NEM, the acronym for the project known as the New Economy Movement, is an enterprise-grade solution that aims to power the impending blockchain economy. The project was launched on March 31, 2015, and utilizes XEM as its native currency. NEM price has dropped this year, though large announcements have seen spikes from interested investors.
The platform’s technology allows multiple ledgers to coexist on one blockchain and it’s already witnessing interest from different entities and partners.
Currently, NEM price is trading near $0.09 with a market cap of $881, 578,533. However, recent developments around the project promise to push its price and market cap even higher. Below we are going to look at three reasons why NEM price (editor note: we’ll NEM here use this instead of ‘XEM’) may peak soon.
PUBLISH Will Utilize The NEM Blockchain
The news media arena is set to start reaping the benefits of the blockchain technology soon.
This is after TokenPost, a Korean blockchain based news platform and Kchain, a leading blockchain consultancy company also based in Korea partnered to launch PUBLISH – software that will aid integration processes.
Through the platform, the two entities plan to improve the news media ecosystem in this era of the distributed ledger technology.
PUBLISH describes itself as the “next generation blockchain-powered news publishing software protocol.” Moreover, it aims to distort the news media network designs with a global participation approach.
Feasibility studies done so far show that the protocol is compatible with the practicalities of publishing news content and it’s also economically viable.
The PUBLISH blockchain project will run on the NEM protocol. It will use NEM’s services including the ability to customize assets and use of encrypted messages.
By doing this, the platform hopes to build a network that will satisfy all news industry participants from advertisers, consumers, content creators and editors within the system.
By having distinct roles for different network participants, PUBLISH stands out from other blockchain projects that are trying to implement the same idea.
Publishers and Editors operating on the platform will be custodians of the blockchain based news within the network.
Also, the hybrid decentralized approach that is used to govern the PUBLISH network is expected to enhance transparency and autonomy when it comes to publishing news.
Launch Of A Blockchain Hub For Nem-Based Startups
Recently, NEM launched a blockchain hub in Melbourne Australia. The hub will see NEM representatives provide support to members of the public on blockchain technology and cryptocurrencies.
It will also host blockchain events and educational programs. Most importantly, it will serve as a business incubator and support center for NEM-based blockchain startups.
Australia holds bright prospects for the NEM foundation. The project has lately benefited from local support through partnerships with startups like TravelbyBit.
This new development is expected to positively impact the price of XEM as it was the case recently after NEM was picked up by Mijin, a Japanese based blockchain platform.
Jian Chan, the NEM Foundation lead in Australia and New Zealand has said that the launch of the hub in Melbourne is a definite sign of NEM’s commitment to supporting innovation in both countries.
Already NEM is collaborating with many Startups in Australia including LaunchVic, Blockchain Centre, Stone $Chalk and many more.
NEM has also announced that it’s working on having more Australian partners and there are plans for some NEM based ICOs soon.
Partnership With Portal Network
This October started well as NEM price jumped by 17 percent after the company signed a partnership deal with Portal Network.
The partnership aims to build the NEM Name Service (NNS) – a decentralized domain name service that will operate on top of the NEM blockchain.
Portal Network is a decentralized platform that provides protocols and projects with Blockchain Name Service (BNS). The company also has a product suite that allows users to create and deploy decentralized websites (dWeb).
Christopher Shen, the founder, and CEO of Portal Network was excited by the partnership and in a statement said:
“We are excited to work with NEM and bring decentralized domain names to the awesome NEM community. With NEM Name Service, interaction with NEM will be made a lot easier.”
As the project takes shape, we can expect to see NEM price respond to the positive news.
Partnership in UAE
A Memorandum-of-Understanding (MoU) has been signed by the NEM team with the Ministry of Community Development (MOCD) in the UAE. This MoU will cover the provision of various consultancy services to MOCD on its future blockchain projects. The UAE has been very progressive in its adoption of blockchain technology as a vehicle to drive its full digitalization policy, which it hopes to achieve in 2019.
This is the latest in a series of partnerships that have been signed with various companies. NEM is also being listed in a number of exchanges such as BitPanda and Kuna Exchange, a Ukraine-based crypto exchange that will offer both crypto and fiat-based pairing with NEM.
NEM price finds itself in a contracting triangle pattern on the long-term chart, but with some positive news of a major partnership agreement hitting the markets a few days ago, is there a chance of NEM finally exhibiting some upside momentum? Read on to discover the possible scenarios could play out in the days and weeks ahead.
NEM is listed on Binance (see our guide here on how to use Binance to buy NEM) and most other exchanges as XEM, where it is paired with either BTC or ETH. This analysis is therefore based on the XEM/BTC pair. The technical state of NEM is that the price action continues to find itself within the confines of two converging trendlines, which form the resistance and support borders of the triangle pattern seen in the chart below.
NEM/BTC Weekly Chart: October 18, 2018
As far as the long-term view on XEM/BTC is concerned, the symmetrical triangle displayed on the weekly chart is still in evolution and the convergence point of both trendlines is still not defined. Emphasis will, therefore, be placed on the daily chart, which shows a much clearer picture.
XEM/BTC Daily Chart Showing Key Levels: October 22, 2018.
Shown above is the resistance line that connects the price highs of September and October 2018. This line, seen at the price level of 0.00001682 BTC, will serve as the resistance level to beat. If you look closely at the chart below, you will see that this is very close to the upper border of the medium-term symmetrical triangle.
A 3-day evolution has occurred, with prices now aiming for the symmetrical triangle’s lower border, which functions as the support line that connects price lows for the price action of most of September and October 2018.
NEM/BTC Daily Chart: October 25, 2018
So what are the possible trade scenarios for traders wishing to trade the NEM/BTC crypto pair?
Trade Scenario 1
Price action continues to be retained within the borders of the symmetrical triangle, and this is a situation that looks like it will persist for some weeks to come. The trendlines that form the borders of the symmetrical triangle are still not close to each other, which indicates that convergence is not likely to occur anytime soon. We will probably, therefore, see prices trading within the borders of the symmetrical triangle, pushing from one border to the next in succession. If this is the case, then range-traders will have opportunities to buy on dips to the support levels or sell the rallies to the resistance.
Trade Scenario 2
One can never rule out the possibility of a price breakout from either end of the triangle, especially if there is some strong market news or a more positive reaction to the latest news for NEM in the market. This will have to manifest in the price candle closing above not just the upper triangle border, but also above the resistance line at the 0.00001652 BTC mark. This move will have to be accompanied by very strong buying volume for it to materialize.
A break of the lower triangle border on generally weak market sentiment is also not off the table. This may occur not because of innate fundamentals in the NEM asset, but mostly due to market sentiment. Such market sentiment has traditionally been linked to the performance of Bitcoin. Even if the downside break eventually fails to materialize, it may be preceded by several tests of the lower triangle trendline.
The long-term, mid-term and short-term outlook on NEM price for the XEM/BTC pair is:
- Long-Term – neutral to slightly bullish
- Mid-term – neutral to slightly bearish
The long-term and medium-term outlook for XEM/BTC continues to remain neutral, as prices are contained within defined horizontal ranges and are not trending.
Please note: this analysis was done on the weekly chart, and therefore the price moves may take several weeks to play out.
Interested in learning more about this coin and analysis on NEM price? You can read more news through our coverage. Here’s an in-depth article detailing the NEM and Portal Network partnership. And here’s the same regarding the OATH and NEM partnership.
If you’re interested in buying or trading for NEM (XEM), you can read our guide on how to do so using Binance here.
Eno is an Associate Member of the UK Society of Technical Analysts (STA). He writes about the financial markets and the technology behind the markets. His articles can be seen on several forex blogs and broker educational websites.