Namecoin, Peercoin Flat After Rallies End

Both Namecoin and Peercoin traded flat this week. After their respective rallies ended, volatility has plummeted, with the 7-day ATR dropping six-fold in PPC/USD and nine-fold in NMC/USD.

Peercoin Trades Flat After Rally Ends

Peercoin is trading flat after its rally ended. For the past seven days since our last PPC update, prices moved in a range between $0.48 and $0.556. While this congestion area is relatively large in percentage terms (12%), it’s much smaller compared to the daily ranges seen in early July. For example, the 14-day Average True Range, a common measure of volatility, has declined over 30 percent, from $0.133 to $0.099 today. A shorter ATR of 7-days shows a much sharper six-fold contraction from a high of 19 cents to only 2.9 cents today.

PPCUSDDaily-jul23

What’s next for Peercoin? Important support can be found in the area between the $0.468 swing low and the $0.46 swing high. While a break below 46 cents would technically qualify as a new downtrend, caution is advised. Prices rarely switch directly from one mode (bullish) to the other (bearish). More time may be needed to produce a sustainable move lower. On the way down more support can be found at $0.376, followed by the round $0.30 mark. To the upside, the bar is set much higher at the $1.027 swing high. We would need to a see a breakout above this figure to jump-start a new uptrend.

Peercoin may get some help from BTC/USD to the downside. Bitcoin has been pushing on the $270 handle for some time now. A decisive break below it, preferably by taking out $263 as well, may lead to a knock-on sell0ff in the crypto-market.

Namecoin Volatility Drops Nine-Fold

Alternative cryptocurrency Namecoin traded flat as well. The total range during the past 7 days has been only 5.8 cents, or 9 percent. The 7-day ATR dropped nine-fold from a high of $0.26 to a low of $0.028 today. We are currently quoted at $0.586 per one Namecoin.

NMCUSDDaily-jul23

A decisive break below the $0.556 swing low would constitute as a new downtrend. But same as with Peercoin, caution is advised on the downside. Moves lower may not go very far and there is a larger risk for reversals. Below this level, the round $0.50 mark may  act as support. This is followed by an important support area stretching from the swing low at $0.453 to the April 16th swing high at $0.461. A break below here could open the door to the 37 cents handle.

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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