NEM bounces from support level amid a market rebound

NEM has been on a persistent downtrend over the past months. On a year-to-date basis, the token has lost by around 55%. Most tokens are still up in YTD gains despite this month’s meltdown.

NEM has been on a persistent downtrend, and with the current gains, the downtrend is showing signs of cooling off. At the time of writing, NEM was trading at $0.105, following an 8.7% gain in 24 hours.

NEM breaks past major resistance

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Following the gains made by NEM, the token has broken past the major resistance level at $1. The token has been trading at below this level over the past week, and the current recovery across the market has played a role in aiding in the price recovery.

There is a chance that NEM will continue with its price gains, given that the broader cryptocurrency market is rallying. In this case, the token will shoot towards the next major resistance at $0.12. Breaking past this level will allow the token to set a two-week high.

However, further recovery in prices will depend upon buyer activity. Short-term traders could only trigger a further dip by accumulating tokens at the current levels. The bears are still in play, and most retail traders are still staying away from the market. A full resumption of the market bulls could see NEM breaking past notable highs of $0.20. This level was last attained in November.

NEM’s downtrend is still possible

There is not much going on in the NEM ecosystem; hence, the current price action comes solely from market support. The market has recorded increased volatility over the past month, so the recovery could fail.

If this happens, NEM will resume its downtrend, which will lead to the coin testing the lower support at $0.09. This support level was tested last week, but the coin bounced back shortly after. The coin could dip towards such lows to test the bears again.

If the bearish trend across the market resumes, NEM holders need to be open to even more losses.