Both Peercoin and Namecoin had a wild couple of days. The two smaller cryptos decided to join the BTC rally at the worst possible time. Bitcoin is experiencing a large correction during the past two days and its having a knock-on effect in the altcoin markets.
Peercoin Breaks Higher, Falls Back Down
Peercoin broke above the former support, now turned resistance at $0.447 on Monday. While this ended the weak downtrend, the move didn’t break $0.48 dollars. In our last PPC article we noted this level as potential rally starter. Prices peaked at $0.479 dollars on Tuesday and we’ve been falling ever since. The primary driver of this move is bitcoin falling from $462 to $435 dollars per coin but more on this below.
The hurdle to start a new PPC rally is still at $0.48 dollars. Close-by we find more resistance at the round 50 cents figure. This is followed by the $0.544 swing high, $0.57 and $0.616 dollars per coin.
On the other end, the support near 40 cents ($0.398 to be exact) could be key. Last week we again got a bounce of this level, thereby confirming its relevance as continuing support. A decisive break below here would start a new downtrend. A bit lower at $0.385 dollars we have a strong support area. If the bears manage to clear it, we could see more gains to the January lows at $0.353 dollars.
Namecoin Rallies, Then Declines
Last week we wrote that the NMC downtrend was over, primarily due to loss of momentum. This week Namecoin broke above the $0.46 dollars resistance, entering a new trend higher.
More upside is the scenario with slightly higher odds but the large BTC correction should give the bulls pause. If you haven’t joined in yet, it may be better to wait for a break of the 48 cents level. This is close to the Tuesday highs at $0.476 dollars per coin. A break higher would show a continuation of the bullish momentum. Above here more resistance can be found at the round $0.50 figure.
On the downside, the $0.412 swing low is major support. A break below it would both end the uptrend and start a new downtrend for Namecoin.
Large Correction for Bitcoin
Bitcoin experienced a large correction during the past two days. We fell from $461 to $435 dollars in the span of 16 hours. Since then BTC/USD has bounced back somewhat to $441 dollars per coin at the moment. In our previous BTC article we said this: ”Bitcoin has a strong resistance level just above current prices. This is around $461-$465 on Fxopen and $470-$475 on other exchanges.”
So far the bears are winning this fight. A break below $423 dollars put a definitive end to the current rally, at least in the short-term. Above current prices the key resistance remains to be $461-$465 dollars. A clean break above should renew the lost momentum and potentially propel us to the $500 round figure.