Both Peercoin and Namecoin are back in ranges after their rallies cooled off. We are now in ‘wait and see’ mode for these crypto-currencies.
Peercoin Rally Ends
The PPC rally ended on May 16th when prices fell through the $1.60 support line on crypto broker FXOpen. This ‘event is marked with a yellow rectangle on the chart below. We are currently still near the same price, almost 10 days later. Prices swung higher and lower but ultimately came back around the average.
A new downtrend requires a break below the $1.361 swing low. A new rally starts above the multi-year high at $2.616 dollars per coin. For now, there is nothing to do here but wait. On the long-term charts PPC/USD is still in a bullish trend.
Namecoin Back in Range
Similarly to Peercoin, Namecoin is now back in range. Its rally also ended on May 16th. Later on, we got a small dead cat bounce to a high of $2.34, which was quickly sold into. We are currently trading at $1.52 dollars.
A break below the $1.44 swing low is needed for a new downtrend. A new bull market (on the daily charts) potentially starts at $2.73 dollars per coin. On the longer-term weekly and monthly charts NMC/USD remains in an upward trend.
Bitcoin Crashes 27 Percent
A crypto update is not complete without covering the big daddy bitcoin. It had a big influence to the losses that transpired in PPC and NMC during the past three days. Bitcoin crashed from a high of $2,736 to a low of 1,988 in two days only. This is a drop of $748 dollars, the largest on record. In percentage terms, the loss was just above 27%, similarly to what we saw back in January of this year.
Bitcoin is quoted around the $2,100 mark right now. The big drop doesn’t invalidate the rally yet, for that we need a decisive breakdown below the $1,700 round figure on Fxopen (levels may differ on other charts). For now, all three longer timeframes (daily, weekly and monthly) are still trending higher.
Fundamentally the picture is still looking bleak for BTC. Few days ago we posted an update about a possible scaling agreement. Unfortunately, it appears that the two sides are still having major disagreements. None of the important Bitcoin developers have endorsed the deal yet and the community remains divided. The lack of progress on this issue is probably responsible for the ‘scaling rally’ quickly fizzling out.