Not much has changed in cryptoland during the past two days. Bitcoin is currently quoted at $422.14, only 16 cents above Tuesday’s price. Litecoin is trading at $3.34, down 3 cents compared to two days ago. But in the days prior to Tuesday, both Peercoin and Namecoin broke out, with different results. Let’s go over PPC/USD first.
Peercoin Up 2 Percent
Peercoin broke out above the $0.467 level last weekend and proceeded to rally to a high of $0.496. The gains here stopped, partly because of the important $0.50 round figure, noted in our previous PPC article. But the major reason behind the retracement back to $0.456 was bitcoin’s crash on February 23rd.
On the chart above we marked the breakout and subsequent decline. We are currently quoted at $0.477, about 2% above the $0.467 breakout level. What’s next for PPC/USD?
On the upside a breakout above the round $0.50 figure could lead to more gains toward $0.579. Above here we have some resistance at the $0.616 swing high. Further out no clear resistance levels can be seen until $0.932 and the parity level at $1 dollar. But due to the large gap from $0.616>$0.932, some resistance levels are likely to emerge in between. Possible candidates are the round levels at 70, 80 and 90 cents per coin.
On the other end, a decisive break below the $0.429 swing low would end the current uptrend. A clean move below the round 40 cents level could start a new PPC downtrend. Below here support on the way down can be found at $0.385 and $0.353 dollars per coin. This is followed by more potential support levels at $0.333 and $0.321 dollars.
Proceed with caution. Peercoin is now in an uptrend but this move appears to be driven by bitcoin to a large degree. By counting on PPC heading higher, you’re essentially betting on BTC continuing its uptrend. The problem is bitcoin started its uptrend back on February 16th, and already clocked some decent gains by the time PPC joined the party. Due to this, the risk to reward by jumping in now are somewhat lower. The above applies to Namecoin as well.
Namecoin Little Changed
Namecoin is trading little changed since Thursday. We are currently quoted at $0.418, only 0.4 cents or 0.97% higher. But more important, we are trading below the potential breakout point noted in our previous article at $0.426. We’re now looking at $0.436, the high reached few days ago.
A breakout above this point may lead to more gains toward the $0.452 swing high. Higher up more resistance levels can be found at $0.48, $0.50 and $0.54 per coin.
On the lower end, a decisive break below the round 40 cents level would end the current weak uptrend. A move below $0.39 could start a new trend lower. The first support level after this is at the $0.357 swing low, followed by the double bottom near $0.332.