Peercoin and Namecoin Head Lower

Last week we wrote about how Peercoin and Namecoin refused to follow big brother higher. A lot has changed since then and now both cryptos have broken to the downside. In the past seven days PPC/USD fell by 1.7 cents or 4.6 percent. Meanwhile NMC/USD hit a low of $0.346 today before stabilizing and is currently quoted at $0.354 or 1.1 cents lower. In percentage terms this is around 3%.

Peercoin Breaks to the Downside

Alternative cryptocurrency Peercoin has broken to the downside. Prices hit a new monthly low at $0.349 on October 20th. But since then we have rallied back up somewhat. Today we hit a high of $0.367, almost 5 percent above the lows. But the highs were used by the bears to sell into and PPC is currently down to $0.353 dollars per coin.

PPCUSDDaily-oct22

Despite the break below the low of the range, Peercoin has yet to clear this area. For this to happen, we will need a decisive break below the $0.349 swing low. Further down some support can be found at the 32 cents level, followed by the round $0.30 figure. Lower still the four-month low for PPC/USD stands at $0.291. This is another notable support, a break below here would exacerbate the losses.

On the upside, the bulls will need to push Peercoin above 40 cents to generate a new rally. This is the high of the current range at $0.393 with some added buffer for false breakouts.

Namecoin Down by 3 Percent

Namecoin is trading down by 3% since our last update. We hit a new monthly low of $0.346 today but the new lows were met by strong buying pressure. The bulls managed to bring NMC back up to $0.354, where we are currently trading.

NMCUSDDaily-oct22

What’s next for this cryptocurrency? The low of the range for Namecoin is at $0.332 dollars. A decisive break below here may start a new downtrend. In quick succession below this figure we can find several support levels at $0.30, $0.286 and $0.274. A clean move below 27 cents may lead to more losses.

On the other end, a break above the September 18th spike high at $0.41 may spark a new rally. Higher up some resistance can be found at $0.463, followed by the round $0.50 level.

While Peercoin and Namecoin look very weak at the moment, caution is advised. Both cryptos have yet to decisively break the lows of their respective ranges. It’s better to exercise restraint then to get caught up in a false breakout.

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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