Peercoin, Namecoin Refuse to Follow BTC Higher

Bitcoin finally broke above the $250 figure today. Prices traded as high as $253.59 in today’s trading session, before a retracement took BTC down to $251.84 dollars per coin. But this new rally has yet to translate into gains for other crypto-currencies. While Litecoin is trending higher, it still hasn’t broken the crucial $3.19 resistance. And both Peercoin and Namecoin remain firmly stuck in the middle of their respective ranges.

Peercoin Still in a 3 Cents Congestion

Alternative crypto-currency Peercoin is still trading within the 3 Cents range outlined in our article last week. The top of this congestion area stands at $0.393 while the bottom is at $0.363. As we can see on the chart below, PPC/USD is currently trading in the middle of its range.

PPCUSDDaily-oct15

What’s next for Peercoin? With bitcoin now in rally mode, a break to the upside should be the more likely scenario. But this is far from a sure bet, as we can see above PPC/USD has fallen in 3 of the last 4 sessions. During the same timeframe bitcoin has advanced by $9 dollars or 3.6 percent.

A decisive break above 41 cents may start a new rally for Peercoin. Soon after we find a resistance at the former swing high at $0.422 followed by important support now turned resistance at $0.43. A clearing of this area should exacerbate the gains. On the lower end a break below the 32 cents figure may start a new downtrend.

Namecoin Within 1.1 Cent Last Week

Not much has changed for NMC/USD since last week. The pair remains stuck in a wider congestion area between $0.332 and $0.41 dollars per coin. In the past seven days Namecoin traded in a very narrow range between $0.363 and $0.374. Highly constricted periods like these are usually followed by breakouts and trends.

NMCUSDDaily-oct15

The potential breakout bounds for NMC stand at $0.41 and $0.33. A clean break beyond either price extreme may jump-start a new trend. Above $0.41 we have important resistance level at the previous swing high of $0.463, followed by the round 50 cents figure. On the downside we have several support levels below the breakdown point at $0.30, $0.286 and $0.274. Due to this caution is advised. Another reason to exercise more caution on the downside is bitcoin’s rally.

Bitcoin Now in Rally Mode

Bitcoin finally broke above the $250 figure today, entering into a new rally. The next resistance to watch out for is the $269 swing high. A break above here may lead to extended gains.

BTCUSDDaily-oct15

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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