It’s become increasingly difficult to look at cryptocurrency price charts without cringing. The current market sentiment is a lot more bearish than we have seen in recent years. All of this will only lead to more losses across all markets in the coming hours and days. The NEM price, for example, has gotten battered quite a bit this week. This momentum has only intensified over the past 24 hours, resulting in another NEM price decline of 35.2%. Sooner or later, the bleeding will stop, but it won’t be today.
NEM Price is Going Under
It is only normal that all cryptocurrencies are on the decline while Bitcoin is struggling mightily to remain above US$7,900. Few people had expected this price to dip so low, but it is evident there is a growing bearish sentiment which will keep all values down for some time to come. The NEM price is a great example of how virtually all gains over the past two months have been wiped out in about three days. The NEM price has returned to US$0.45, which is almost on par with its value on December 12.
With all of the gains wiped out in quick succession, it is difficult to envision a bright future for NEM. Even though the NEM price surpassed US$2 less than a month ago, most people have already forgotten that ever happened. It is difficult to fault them in this regard, as the current negative sentiment will only lead to short-term tunnel vision. It’s virtually impossible to see any positives right now, especially where the NEM price is concerned.
Do keep in mind the markets will eventually reverse once again. Major market dips are nothing unique in the world of cryptocurrency. We simply had too much growth in 2017 and are now paying the price for people’s greed and FOMO. It is logical that the NEM price will surpass US$1 again at some point, but no one knows whether that will be this year or the next. Things tend to change quickly in the world of cryptocurrency, and the NEM price will be no exception to the rule.
With US$43.23 million in 24-hour volume, it is evident that people are looking to sell NEM sooner rather than later. It is unfortunate that a lot of traders only look for short-term gains or loss reduction, rather than seeing the bigger picture. There is plenty of room for future profits as far as the NEM price is concerned. When all markets recover again, 2018 could easily become an even more bullish year than 2017 was. When that happens, all trading volumes will pick up once again.
As of right now, Zaif is still the largest NEM market in terms of 24-hour trading volume. It generated over 42.5% of all trades across NEM’s markets. Bittrex and Poloniex complete the top three, which only confirms that people are selling NEM to gain more Bitcoin. It is a common trading tactic, as altcoins only exist to increase people’s BTC holdings first and foremost. Unfortunately, it seems most people outside of Japan look at NEM in a similar manner.
It is unclear what the future holds for all cryptocurrencies. We may very well witness some spectacular gains in the blink of an eye when we least expect them. All it would take is a 10% Bitcoin price nudge to send altcoins up by 20-40% again. Money comes and goes in the cryptocurrency world, but we will have to reach a bottom at some point. Assuming this is as low as the prices will go, the weekend ahead may prove to be rather exciting for many reasons.
