Namecoin Down, Peercoin Rally in Jeopardy

Both Namecoin and Peercoin have lost a lot of the gains since last Thursday. Namecoin is down by 13 percent while PPC/USD is quoted at $0.394, lower by just over 5 percent since our update.

Namecoin Down by 13 Percent

Namecoin is trading down to $0.421 from $0.484 last week, prompted by large losses in bitcoin. But while BTC/USD is currently lower by 7.8% to $353 dollars per coin, Namecoin is down a much larger 13 percent. From the highs the decline is even bigger at around 22 percent.

NMCUSDH4-dec3

As we can see on the chart above, the altcoin didn’t break the previous swing high at 54 cents. Last Thursday we noted this level as a breakout point that could start a new rally. Thus Namecoin remains in a range.

The levels to watch are $0.54 on the upside and $0.359 on the downside. A break of either of these price extremes may trigger an uptrend/downtrend. Below 35 cents the next level of support stands at the double bottom formation at 33 cents, followed by the $0.306 August lows and the round $0.30 figure. A clearing of this support area may take NMC/USD to the yearly low at $0.274.

On the other end above 54 cents resistance can be found at $0.666, followed by the July swing high at $0.717 dollars per coin.

Peercoin Rally in Jeopardy

Unlike Namecoin, Peercoin broke above it’s previous swing high at 44 cents, putting it in rally mode. Initially we saw extended gains to  a high of $0.477 but from here it was down all the way, again influenced by bitcoin’s move lower.

PPCUSDH4-dec3

On the chart above we can see that PPC/USD is now back in its range, quoted at $0.394 dollars per coin. To renew the lost momentum higher, the bulls will need to push prices above the $0.477 high. A break below the low of the range at $0.356 would end the current rally and start a new downtrend for Peercoin. But a lot of what happens with PPC will depend on big brother bitcoin, so let’s go over some BTC levels as well.

Bitcoin Back to the $350 Figure

Bitcoin is currently trading close to the $350 figure, after trading as low as $345 yesterday and as high as $379.80 just three days ago. We are in a highly volatile environment here, so caution is advised. Due to the large movements on a day to day basis, it would be prudent to lower your trading size according to your risk profile.

A decisive break below the $340 level may have some follow-through. But to start a new downtrend, the bears will have to push BTC/USD below $290 dollars per coin. On the other side a breakout above the $380 handle may restart the rally.

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.

with No Comments 2564

Share: