Cryptocurrencies Retrace Across the Board

Cryptocurrencies are retracing across the board. After topping out near the $270 resistance on Tuesday, bitcoin has declined for two straight days. The total loss from the top currently stands at $14 dollars or 5.3 percent. Meanwhile the rest of the market is clocking much larger losses. Peercoin followed BTC lower by 14 percent and Namecoin has fallen by 13 percent cents since Tuesday.

Peercoin Falls by 14.6 Percent

Peercoin is currently down by 8.4 cents since reaching a high of $0.575 on Tuesday. In percentage terms this is 14.6%, the most among the top 4 cryptocurrencies.  We are currently quoted at 49.1 cents for one Peercoin. Note that the 14% fall is measured from the high to the current price. If we measure it to the lows hit yesterday, the losses were over 18 percent.

PPCUSDDaily-july2

What’s next for Peercoin? Despite the large losses, the altcoin is still technically in an uptrend. However a decisive break below the 37 cents swing low will end the rally. More support on the way down can be found at the previous resistance, now turned support at $0.353, closely followed by the round $0.30 figure. You can see the rest of the levels on the chart above.

On the higher end, to renew the momentum higher, we will need to see a break of the $0.575 swing high. Close by the round $0.60 level should also act as resistance. Higher still, we find a strong resistance area comprised of two levels, $0.70 and $0.73. This area successfully held up prices for two whole months last year, in October and November. The area finally broke in early December 2014 and PPC/USD fell over 27 percent to a low of 51 cents. Old support turns to resistance and this previous important level may cap prices on the upside, at least for a while.

Namecoin Down by 13 Percent

Namecoin is also down. The cryptocurrency peaked at $0.775 on Tuesday and it’s been downhill ever since. Peak to trough, NMC/USD fell by 15.4 cents, or just shy of the 20 percent mark. We are currently quoted at $0.669, 10 cents below the highs.

Namecoin continues to be in rally mode, to end it the bears will need to push prices below the 45 cents swing low. Right in this area we have the $0.461 figure, a previous spike high for NMC. This level adds more credence to the support at $0.45. On the upside, some resistance can be found at 70 cents and 75 cents. This is followed by an important resistance area that stretches from Tuesday’s high at $0.775 to $0.783.

NMCUSDDaily-july2

The 78 cents level is a previous swing low for NMC/USD that was reached in October 2014. It was the key level to the downside. After it was decisively broken on December 23rd, Namecoin lost 43 percent of its value in the following month. Given how important it was to the downside, $0.783 will likely be relevant on the upside as well, this time as a resistance level.

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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