Peercoin Down, Namecoin Forms Double Bottom

Since our last update, BTC/USD hit another milestone at $300 dollars. We are currently quoted at $304.97 dollars per coin, almost $20 dollars higher since Tuesday. But as bitcoin continues to make new highs, the rest of the crypto-market stays flat. Peercoin briefly entered into a downtrend while both Litecoin and Namecoin are still range-bound.

Peercoin Down but Not Out

Peercoin broke below the $0.349 swing low on October 23rd. Prices continued to fall until a low of $0.333 was hit on October 25th. But here the losses stopped and PPC/USD is currently quoted at $0.361 dollars.

PPCUSDDaily-oct29

Prices have gained over 10 percent from the $0.333 low, a large amount for a retracement. After this sizable upward move, the short-lived PPC downtrend can be considered over. Bitcoin’s rally is another problem. While so far there has been no spillover effect, it’s hard to see large PPC/USD declines while bitcoin is in a strong uptrend. Big brother may need to slow down the gains or rollover before a sustained crypto downtrend can begin.

A move below the $0.333 low is needed to re-start the downward trend. Below here the first support level can be found at the 32 cents level, followed by the round $0.30 figure. Slightly lower we have the four-month low for Peercoin at $0.291, a break below here would exacerbate the losses. On the other side, a decisive breakout above 40 cents may start a new uptrend.

Namecoin Still Range-bound

Alternative crypto-currency Namecoin is still stuck in its range. We are currently quoted at $0.348, about 2 percent lower compared to last week.

NMCUSDH4-oct29

The bears managed to bring NMC/USD down exactly to the low of the range at $0.332 but no further. With that we have now formed a double bottom pattern in this altcoin. The first trough of the bottom was on September 12th and the second on October 25th. A decisive breakout below here would start a new downtrend. Further down we find more support at $0.30, $0.286 and $0.274. The 27 cents level is especially important. This is a two-year low for PPC, a clean move below this figure would exacerbate the losses.

On the upside, a breakout above the September 18th high at $0.41 may start a new rally. Higher up some resistance can be found at $0.463, followed by a stronger resistance level at 50 cents.

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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