Both Peercoin and Namecoin followed big brother lower on June 1st. The break took out nearly 2 cents from PPC and about 1.4 cents from Namecoin’s value.
Peercoin Rally Ends
The rally in PPC prices took a severe setback this week as the altcoin suffered on renewed BTC selling. Alternative cryptocurrencies will often sell-off in tandem with bitcoin prices. Since May 30th PPC/USD has lost 4.2 cents or just below 13 percent. But the sell-off has paused during the past two days as BTC stabilized as well. We are currently quoted at $0.282 dollars per coin.
With the recent loss of momentum, it could be said that the rally for Peercoin is over. To restart it, the bulls will need to push prices back above the $0.353 swing high. The previous resistance area from $0.25 to $0.263 may provide support to falling prices. But if the bears manage to decisively break below 25 cents, PPC would technically enter into a downtrend. However the more conservative approach calls for waiting until we get a break below the double bottom near 21 cents.
Namecoin Still Range-bound
Namecoin continues to trade in a range. The recent sell-off shave off about about 7 percent from the value of NMC/USD. The crypto is currently trading at $0.313.
As can be seen on the chart above, the general area between $0.274 and $0.371 is a no man’s land for Namecoin. We will remain stuck in a tight unpredictable range until prices manage to stage a breakout beyond these bounds. On the lower end the double bottom formation will be key. The troughs of this formation are at $0.274 and $0.286. Namecoin will need to make a decisive break below 27 cents to jump-start a new downtrend.
The area from the April 22nd swing high at 36 cents to the new high at $0.371 will be the key resistance figure. We will need to see a decisive breakout above this level for a new rally in prices. Important levels above can be found at $0.40, followed by the April 16th high at $0.461.
As the last few days of price action have shown, bitcoin prices still have a considerable effect on altcoins. If BTC/USD manages to successfully peel off from the $230 mark, NMC and PPC may lose more ground. So far the bears have been unable to push bitcoin prices significantly lower. We are currently quoted at $227 dollars per coin. For more BTC levels, check out the Tuesday article HERE.