Both Peercoin and Namecoin entered into bearish territory last week. Soon after big brother bitcoin broke the important $270 handle, the altcoins followed suit, with Peercoin breaking $0.465 and Namecoin going below 55 cents per coin.
Peercoin Enters Downtrend
Alternative cryptocurrency Peercoin entered a new downtrend on August 9th, after a decisive break below the $0.465 figure. We had some follow-through soon after, with prices bottoming out at $0.431 on August 11th, a loss of 7.3 percent. But since then PPC/USD bounced back somewhat, hitting a high of $0.484 the next day, only to resume the decline today. One coin is currently selling for exactly 44 cents.
What’s next for Peercoin? On the upside the broken $0.465 handle may become resistance, by the principle support turns to resistance. Higher up the round 50 cents figure may also act as resistance. On the lower end, the August 11th swing low at $0.431 may present some weak support but a more important level can be found lower at $0.376. This was an interim swing low reached on June 26th. Lower still, the round $0.30 mark may also act as support to falling prices.
Namecoin Breaks 55 Cents
Namecoin broke below the 55 cents figure, noted in our article last week. Back then we said: ”A clean breakdown below 55 cents however may spark a new downtrend. This is now a triple bottom formation, tested all throughout July. A break lower could quickly send prices to another important support at the round $0.50 figure.
That’s more or less what happened. After the break on August 9th, prices fell to a low of $0.506 in ten hours. This was a decline of exactly 8 percent. But similarly to Peercoin, NMC/USD then bounced back to hit an interim swing high at $0.567 yesterday. And again exactly as Peercoin, today the crypto is back down to $0.521.
The major influencing factor here is bitcoin. Everyone’s favorite cryptocurrency rallied from $252 on August 9th, to a high of $269.26 yesterday. Today BTC/USD is down over $10 from its highs at $258.79 dollars per coin.
The first important support for Namecoin can be found at the round 50 cents level. This figure proved its validity with the recent bounce on August 9th. If the bears manage to take out this level, below we can find a support area stretching from the swing low at $0.453 to the swing high at $0.461. A decisive move below 45 cents could lead to a sell-off towards $0.37 dollars per coin.