Failed Breakdown for Namecoin, Peercoin

Namecoin and Peercoin continue to be dragged down/up along with BTC prices. The two cryptos crashed during the May 26th/27th bitcoin dumping but has since recovered nicely as the big brother made new highs.

Namecoin Prices Remain Range-bound

Namecoin prices remain range-bound after a failed breakout to the downside. The correlation between BTC/USD and NMC/USD is still high. We can expect Namecoin to continue being the ‘victim’ of bitcoin’s fortunes. If you already have a bitcoin position keep in mind that you may be doubling your exposure with a NMC trade in the same direction.

nmcusdh4-june8-copy

Technically we have settled back into ”no man’s land” as can be seen on the charts above. A new uptrend requires a break above the $2.33 swing high. Not far from here we have our first resistance at the $2.349 swing high, followed by the multi-year highs at $2.727 dollars per coin.

On the lower end, a new downtrend needs a clear break below the $1.08 lows. Support below here can be found at the $1 round figure, closely followed by the former resistance (now turned support) at 98 cents. A clearing of this support area should lead to more NMC losses.

Peercoin Follows BTC Higher

Similarly to Namecoin, correlation to BTC remains high in PPC/USD as well. On the chart below we see the familiar pattern of losses on May 26th/27th followed by a recovery as bitcoin rallied back.

ppcusdh4-june8-copy

A new PPC uptrend needs a clean move above $2.30 dollars per coin. This is slightly above this month’s high at $2.293, a notable resistance level. Higher up more resistance can be found at the $2.50 round figure and the multi-year high of $2.616.

On the downside, the low to ‘beat’ is $1.079. A decisive break below here would restart the downtrend. Support can be found at the $1 parity level followed by the previous swing high at $0.973. A clearing of this support area could extend the PPC move lower. The previous resistance at $0.863 should now act as support to falling prices.

Bitcoin Retraces From Highs

Because alts like Peercoin and Namecoin are very correlated to bitcoin let’s do a small update. In the past two days, we had a retracement in BTC/USD down to a low of $2,580 from the $2,848 all-time highs. This doesn’t invalidate the uptrend yet. For that, a move below the $2,000 round level is needed. For more on bitcoin, take a look at our previous update.

Open a bitcoin trading account with FXOpen.

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.

More Posts

By with No Comments 0

Related Posts

No posts were found for display