Both Peercoin and Namecoin broke down in the past seven days, ending the prolonged range. Peercoin barreled through the support at $0.444 last Thursday, clocking more gains on Friday. The losses for NMC didn’t happen until two days later on Sunday. Both cryptos are currently trading substantially lower compared to one week ago.
Peercoin Breaks Down, Falls Over 7 Percent
Peercoin is trading down by 7.3 percent this week. As we noted above, although the break happened late on Thursday, the bulk of the losses transpired last Friday. Prices hit a low of $0.416 dollars that day before retracing somewhat. Since then we’ve hit a new multi-week low at $0.41 dollars but the pace of the losses has obviously slowed.
Nonetheless, the break of the $0.444 support put us in a new downtrend for PPC/USD, at least in the short-term. Below current prices, the first support can be found at the round 40 cents figure. Around $0.385 we find a strong support area. If the bears manage to clear this, they may extend the losses to $0.353 dollars, the January lows for Peercoin.
To end the current downtrend the bulls will have to decisively break the former support at $0.444. Support turns to resistance and this level may now act as a lid on prices. A new bull trend requires a break of the round 50 cents level. Resistance above here can be found at the $0.544 swing high followed by the March high at 57 cents and another resistance at $0.616 dollars per coin.
Namecoin Down as Well
Namecoin is trading down as well, currently lower by 2.7 cents or just above 6 percent. Similarly to Peercoin, the losses was NMC transpired after the break of decisive support, this time at $0.434 dollars. In our previous article we wrote that both PPC and NMC were trading on important support levels. More about this HERE.
On the chart below we can see that shortly after this level was taken out, prices tumbled to a low of $0.413 dollars. However after those initial losses NMC/USD has been fairly flat for the last few days.
Namecoin is also technically in a downtrend. Support lower can be found close to the 40 cents figure at $0.398 dollars. This is a strong support area, a break of which could open the door toward the $0.357 swing low. Further down we have more strong support at the double bottom formation near $0.332 dollars, followed by the August low at $0.306 dollars per coin.
To end the current downtrend, the bulls have to decisively break the 45 cents level. However a new trend higher requires a break of the round $0.50 figure as well.