Crypto Consolidation Continues

Most major cryptocurrencies have been range-bound for the past two weeks. This consolidation is still ongoing. While Peercoin is testing an important support, it hasn’t broken it yet. Namecoin on the other hand is still firmly in its range.

Peercoin Testing Support

Alternative cryptocurrency Peercoin is testing the important support level at $0.447. We are currently quoted only 0.1 cent below at $0.446 dollars per coin. On the chart below we can see that since the start of this week PPC/USD has resumed the downward slide and is back to testing the support for the past few hours.

PPCUSDH4-mar31

A decisive break of this level could start a new downtrend for Peercoin. The first important support below here is at $0.429 dollars followed by the round 40 cents figure. Around $0.385 we find a strong support area. A clearing of area may extend the losses to the January spike low at $0.353 dollars.

On the upper side, the swing high at $0.544 may be key. A clean move above this level could start a new rally and possibly lead to more gains toward this month’s high at 57 cents. Above this level we have another resistance at the $0.616 swing high, followed by $0.932 dollars and the parity level at $1 flat. As we’ve noted several times before , due to the large gap from $0.616 to $0.932, resistance levels are likely to emerge in between. Potential candidates for this are the round levels at $0.70, $0.80 and $0.90 dollars per coin.

Namecoin Still Range-bound

Namecoin is still trading range-bound. In the early part of this week we almost matched last week’s low at $0.434 with a low at $0.435 dollars. Since then however we’ve bounced somewhat and one NMC is currently selling for $0.445 USD.

NMCUSDH4-mar31

A decisive breakout below the $0.434 dollars level could start a new downtrend. Below here support can be found close to the 40 cents level at $0.398 dollars per coin. A clearing of this strong support could open the door toward the $0.357 swing low. Further down we have a double bottom formation at $0.332 dollars, followed by another potential support at the August low of $0.306 dollars per coin.

The hurdle to starting a new trend to the upside currently stands around the 54 cents level. The first important resistance level about here is at this month’s high at $0.633 dollars. This is followed by the November spike high at the $0.666 dollars and the former swing low at $0.751. Support turns to resistance and this former low may now act as a lid to rising prices.

Petar Kotevski

Petar is a forex trader and writer with 9 years of experience in financial markets. He has been following bitcoin since 2010. A year ago, as the BTC market matured, he started getting more involved by writing articles on bitcoin and other alternative currencies.

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