NEM/USD goes ballistic as Coincheck resumes NEM trading
|- The Japanese cryptocurrency exchange resumed trading operations with NEM.
- The coin ousted NEO from 15th place in to-20 rating.
NEM is the best performing coin out of top-20, gaining over 25% in the recent 24 hours and 11% since the beginning of Tuesday. The so-called Japanese Ethereum is changing hands at $0.1211 after a long period of consolidation below $0.10 handle. NEM has overtaken NEO and settled at the 16th place with the total market value over $1B. Notably, NEM's trading volumes increased tenfold in a single day, from about $5,000 to $54,000 by press time.
What's going on with NEM?
The sudden spike in trading volumes may be the driver behind the price growth. The Japanese cryptocurrency exchange Coincheck resumed NEM trading after a long suspension period potentially related to the infamous cryptocurrency heist in January 2018. Hackers stole over $500M in NEM coins from Coincheck's hot wallet and managed to get away with the loot despite the joined efforts of the cryptocurrency exchange, Tokyo police and NEM Foundation.
While the news is definitely positive, the most part of the movement is caused by FOMO effect (fear of missing out), as traders try to jump this bandwagon until its too late and earn some quick buck amid otherwise sluggish market.
Basically, it means that the downside correction may be just around the corner with the obvious target $0.10. If this support level withholds the speculative positioning and profit-taking, then the coin will have a chance for a steady growth in the future. The next resistance lies with $0.13, and that's where some sellers may pop up. Once above, the upside will gain traction and take the price towards $0.1447 (August 7 high and the starting point of the recent decline).
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