New Economy Movement XEM/USD was developed to be a better blockchain when compared to many others and it tries to do this through the usage of two key concepts of proof-of-importance (PoI) as well as harvesting. Many blockchains, for example, use proof-of-work (PoW) or proof-of-stake (PoS).
This requires a mining device to do the work for the blockchain, where the rewards are allocated to the miners based on their contributions, and New Economy Movement uses harvesting instead of it, which might be a good reason as to why this might be a good time to buy XEM.
Generating XEM in New Economy Movement
PoW leads to a lot of power consumption, and PoS incentivizes cryptocurrency saving instead of spending, as the participants with more coins hold more power.
PoI rewards users that make transactions with others on the network, and conducting more transactions above a minimum size also adds to a participant’s POI score and helps that participant gain a lot more chances to claim a reward.
In other words, they cannot be mined, and instead, the new coins are produced through what is known as harvesting in order to determine who harvests the next block. Through this method, every time a transaction is initiated, the first computer to see the transaction notifies other users around that transaction while generating a new block.
Whenever a user who has 10,000 vested XEM ends up generating a block in NEM, they get the transaction fees as a reward. This is why you might want to invest in XEM early on, as there will come a point in time where many users will want to vest 10,000 XEM tokens in order to harvest the next blocks.
Should you buy XEM?
On March 17, NEM launched Symbol after 4 years of development, which is the next evolution of the blockchain. In fact, the mainnet officially went live and marked the next chapter for the blockchain. Symbol is intended to be the connection between businesses and the blockchain, developed with interoperability in mind.
This is when we saw the value of XEM at $0.39. Keep in mind that Symbol has its own token, XYM, which runs in parallel with NEM.
On May 23, 2021, the NEM Group announced that it would enter the NFT space with sports legend Sir Kenny Dalglish and the Manchester City star Riyad Mahrez.
NEM’s entry into the digital collectibles space is focused on offering a premium product experience aimed to bring fans and supporters closer to the brands that they love. This can, potentially, increase the value of the XEM token over time as more people become interested in it due to this new NFT initiation.
If we look at its history, we can see that XEM had a bullish start which was seen as a good sign. It sat comfortably around the $0.20 mark throughout the beginning of 2021.
On June 14, 2021, XEM is worth $0.16. With the innovations and increase in popularity of XEM we could potentially see it rise to over $0.30 by the end of 2021. However, if it ends up falling below $0.15, it would be seen as a bearish sign as a key support level failed to attract patient buyers looking for an opportunity to buy on a dip.
The overall cryptocurrency market is up 8% as of writing this story with Bitcoin (BTC) shooting 12% taking its overall market dominance above 45%. The Bitcoin price has shot up post-Elon Musk stating that Tesla will once again accept Bitcoin (BTC) payments once 50% of BTC mining turns on renewables. Late Sunday evening, June 13, […]
Bitcoin price may have pumped 10% to $41,000 but derivatives indicators show top traders aren’t feeling so bullish.
Sometimes all Bitcoin (BTC) needs to pump 10% is a positive remark from someone like Elon Musk.
The Tesla CEO has been pointed to as the culprit for the recent downturn after the company’s May 12 announcement explaining that it would no longer accept Bitcoin payments due to environmental concerns. Musk followed up by saying that he was looking into other cryptocurrencies that required 99% less energy consumption.
However, on June 13, the situation reversed as Musk reassured the public that Tesla did not sell any additional Bitcoin. The post also said that the electric-car producer would resume taking BTC payments as soon as its Bitcoin mining relied on a minimum of 50% clean energy.
In bear markets, top traders act with caution
While retail investors and algorithmic trading bots jump into action as soon as bullish or bearish signals and news flash, top traders tend to act more with more caution. Those who have been around the crypto markets long enough know that positive news might end up being ignored or severely downplayed in bear markets.
Two weeks later, police reportedly questioned the founder of OKEx, forcing the exchange to suspend crypto withdrawals. Had this series of negative news happened while Bitcoin was flat or in a bearish phase, the price would have undoubtedly have stalled during a bear market.
As shown above, Bitcoin barely had any negative impact in late September and October 2020. In fact, by the end of November 2020, Bitcoin was up 74% in two months. This is the main reason why top traders tend to ignore positive news during bear markets and vice-versa.
The 3-month futures premium is neutral
A futures contract seller will usually demand a price premium to regular spot exchanges. This situation is not exclusive to crypto markets and happens in every derivatives market because in addition to the exchange liquidity risk, the seller is postponing settlement and this results in a higher price.
The 3-month futures premium (basis rate) usually trades at a 5% to 15% annualized premium in healthy markets. When futures are trading below the regular spot exchange price, it signals a short-term bearish sentiment.
As shown above, the future basis has been below 11% since May 20 and flirting with bearish territory on multiple occasions as it tested 5%. The current level indicates a neutral position from top traders.
The options skew is no longer signaling fear
The 25% delta skew compares similar call (buy) and put (sell) options side-by-side. It will turn positive when the protective put options premium is higher than similar risk call options.
The opposite holds when market makers are bullish and this causes the 25% delta skew indicator to enter the negative range.
The above chart confirms that top traders, including arbitrage desks and market markers, are currently uncomfortable with Bitcoin price as the neutral-to-bearish put options premium is higher. However, the current 7% positive skew is far from the 20% exaggerated fear seen in late May.
Derivatives markets show no evidence of top traders getting excited about the recent $40,000 hike. On the bright side, there is room for leverage buyers to mount positions. Stronger upswings usually occur when investors are least expecting, and the current scenario seems to be a perfect example.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The Glasgow-based company is run by 20-year-old Kaeleb Mckay and his father Cameron. The firm specializes in the roofing of industrial, commercial, and domestic buildings. Apart from this, the company takes pride in traditional build maintenance and repairs. Kaeleb noted that they chose cryptocurrencies as a means of payment because they get paid quickly.
Despite being only 20-years-old, Kaeleb disclosed that been involved in the crypto space for years. According to him, he took a keen interest in crypto as early as 2014. Proving that BTC cuts across all age groups, Kaeleb said that he did a £500-repair in November last year for a pensioner that was well into her 60s. The surprising thing was that she wanted to pay in BTC.
Apart from the above case, the company has received crypto payments on multiple occasions. Kaeleb disclosed that just a few weeks ago, other elderly Brits wanted to pay in crypto with one man paying £180 in ETH for an emergency roof repair.
Although ASAP Roofing and Building Ltd. saw an opportunity and seized it, UK’s financial regulators are increasingly clamping down on crypto. For instance, the Financial Conduct Authority (FCA) cautioned UK citizens that they should be able to lose all their money if they invest in cryptocurrencies. Reiterating the concerns that global financial watchdogs have over cryptocurrencies, the FCA said cryptos are high-risk, speculative investments.
While ASAP Roofing and Building Ltd. has made headlines with its news of accepting BTC, it is not the first company in the field to embrace crypto. In January 2018, Elite Roofing, a roofing company based in Denver announced that it had started accepting BTC for its roofing services. At the time, Randy Brother, the company’s CEO, said cryptocurrencies like BTC are the way of the future.
Bitcoin’s surge above $40,000 and the breakouts from select altcoins may be signals that the bottoming process has begun.
Bitcoin (BTC) has risen above the psychological resistance at $40,000 following a series of positive news flow over the past week. The first bit of bullish news that impacted the price of Bitcoin was a tweet from Tesla CEO Elon Musk who said the carmaker wil accept Bitcoin payments if more than 50% clean energy is used by Bitcoin miners with a “positive future trend.”
Another piece of news that may have boosted the recovery in Bitcoin was Paul Tudor Jones' suggestion that 5% of every investment portfolio have exposure to Bitcoin, which is equal to that of gold, cash and commodities. Jones was al critical of the U.S. Fed’s view that the current rise in inflation numbers is transitory.
The recent bullish news is proof that the current drop has not altered the fundamentals of Bitcoin. Therefore, as the price stabilizes, Bitcoin may again attract institutional investment.
Meanwhile, MicroStrategy has completed its $500 million offering of secured notes, which the company plans to use for buying Bitcoin. After deducting various expenses, the business intelligence firm is left with $488 million that will be used to purchase Bitcoin. This will add to the company’s existing stack of 92,079 Bitcoin.
With demand likely to return, could Bitcoin lead the recovery in the crypto markets? Let’s analyze the charts of the top-10 cryptocurrencies to find out.
Bitcoin turned up on June 13 and soared above the resistance line of the developing descending triangle pattern. This move invalidated the bearish setup, which is a bullish sign. The buyers have continued their purchase today and pushed the price above $40,000.
The 20-day simple moving average ($36,779) has flattened out and the relative strength index (RSI) has risen into the positive territory, indicating that the selling pressure has reduced.
The BTC/USDT pair could now attempt a rally to the 50-day SMA ($44,571), which may act as a stiff resistance. If the price turns down from this resistance but finds support at the 20-day SMA, it will suggest the sentiment has turned bullish.
A breakout of the 50-day SMA will signal a possible change in trend and the pair could then rally to $51,483. This bullish view will be negated if the pair turns down and plummets below the $34,600.36 support. Such a move will suggest that traders are dumping their positions on minor rallies.
Ether (ETH) dropped below the support line of the symmetrical triangle on June 12 but the bears could not sustain the lower levels. This suggests that buyers are accumulating on dips.
The ETH/USDT pair rebounded off the trendline on June 13 and the bulls are now trying to push the price above the 20-day SMA ($2,581). If they succeed, the pair could rally to the resistance line of the triangle.
A breakout and close above the triangle and the 50-day SMA ($2,940) will indicate that the downtrend is over. The pair could then move up to the 78.6% Fibonacci retracement level at $3,806.91.
This positive view will invalidate if the pair turns down from the current level or the overhead resistance and breaks below $2,200. That could open the doors for a fall to $2,079 and then $1,728.74.
Binance Coin (BNB) bounced off the trendline on June 13 and the bulls have pushed the price above the 20-day SMA ($364). This suggests that the bulls are defending the trendline aggressively.
If the bulls sustain the price above the 20-day SMA, the BNB/USDT pair may move up to $433. This level may act as a resistance but if the bulls can push the price above it, the ascending triangle pattern will complete.
This bullish setup has a target objective at $609. The gradually rising 20-day SMA and the RSI above 46 suggest the buyers are trying to make a comeback.
However, if the price turns down from the current level and breaks below the trendline, it will suggest that supply exceeds demand. The pair could then drop to $291.06 and then to $211.70.
Cardano (ADA) slipped below the trendline on June 11 but the bears could not sustain the lower levels. This suggests that the bulls are buying on dips. The altcoin rose above the trendline on June 13 and the bulls are currently trying to push the price above the moving averages.
If they manage to do that, the ADA/USDT pair could rise to $1.94 where the bears are likely to pose a stiff challenge. However, a breakout and close above this resistance will suggest the correction is over.
Contrary to this assumption, if the price turns down from the moving averages, the pair could again drop to $1.33. A break below this support will indicate weakness and the pair could then plummet to $1.
Dogecoin (DOGE) is attempting to rebound off the neckline of the head and shoulders pattern. This suggests the bulls are attempting to defend this support. If buyers push the price above the 20-day SMA ($0.34), the altcoin could start its journey to the 50-day SMA ($0.40).
The bears are again likely to mount a stiff resistance at the 50-day SMA. If the price turns down from this resistance, the DOGE/USDT pair could drop to the neckline and remain range-bound for a few days.
The flattening moving averages and the RSI just below 46 points to a range-bound action in the near term. This neutral view will invalidate if buyers push the price above $0.45 or bears sink the pair below the neckline.
XRP has been trading below the 20-day SMA ($0.92) for the past few days but the bears have not been able to sink the price below the $0.75 support. This suggests that bulls are accumulating at lower levels.
The 20-day SMA is flattening out and the RSI is above 44, indicating the bulls are trying to make a comeback. A breakout and close above the 20-day SMA will be the first sign of strength. It will indicate that traders have resumed their purchases.
That could push the price to $1.10 where the bears will try to defend the level aggressively. However, if buyers thrust the price above this level, the XRP/USDT pair could rise to the 50-day SMA ($1.19). This positive view will invalidate if the price turns down and plummets below $0.75.
Polkadot’s (DOT) price action of the past few days has formed a symmetrical triangle pattern, indicating indecision among the bulls and the bears.
The flattish 20-day SMA ($22.98) and the RSI above 48 points to a possible range-bound action in the short term. However, if bulls push the price above the resistance line of the triangle, the DOT/USDT pair may start a relief rally to $31.28 and then to $41.40.
On the contrary, if the price turns down from the resistance line, the bears will make one more attempt to sink the pair below $19.50. If they succeed, the pair could start its journey toward the next critical support at $15.
Uniswap (UNI) is trading between the $21.50 support and the $30 resistance for the past few days. Although the bears pulled the price below $21.50 on June 12 and 13, they could not sustain the lower levels. This suggests that the bulls purchased the dip below $21.50.
The relief rally is likely to face stiff resistance at the downtrend line. This shows that the bears have not thrown in the towel yet. If the price turns down from the current level, the sellers will make another attempt to sink the UNI/USDT pair below the $21.50 to $20.23 support.
If they succeed, the pair could drop to $16.49 and then $13.04. Contrary to this assumption, if the bulls push the price above the downtrend line, the pair may move up to the 20-day SMA ($25.45).
If the price turns down from the 20-day SMA, it will suggest the sentiment remains negative. However, if the bulls push the price above the 20-day SMA, the pair could rise to $30.
Litecoin (LTC) has failed to break above or below the symmetrical triangle as the bulls are buying on dips to the support line and bears are selling at the resistance line. If the price reaches the apex of the triangle without breaking out, the pattern will be invalidated.
The bulls are currently attempting to push the price above the resistance line. If they succeed in sustaining the price above the triangle, it will suggest that buyers are back in the game. That could open the doors for a move to $225 and then to the 50-day SMA ($237).
Alternatively, if the price turns down from the current level, the bears will make one more attempt to sink the LTC/USDT pair below the support line. If that happens, the pair could drop to $140 and then to $118.03.
Bitcoin Cash (BCH) has been trading inside a descending triangle pattern for the past few days, which will complete on a breakdown and close below $538.11.
If that happens, the BCH/USDT pair could witness aggressive selling and may drop to $400 and then to $370. The gradually downsloping 20-day SMA ($656) and the RSI in the negative territory suggest the path of least resistance is to the downside.
This negative view will invalidate if the bulls propel the price above the downtrend line. Such a move could catch several aggressive bears off guard and may result in a short squeeze, pushing the price to the 50-day SMA ($894).
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.