Peercoin, Namecoin Switch to Uptrends

Both Peercoin and Namecoin have switched from downtrend to uptrend during the last seven days. The surge in prices on Sunday helped both altcoins take out crucial resistance levels. Since then, however, we’ve seen limited gains for PPC while NMC gave up all of the gains and then some.

Peercoin Breaks Out

Alternative cryptocurrency Peercoin broke above the important $0.429 swing high on Sunday. In our previous article we noted this level as a potential trend changer. In the initial run-up a high of $0.524 was hit. But since then we’ve seen a major retracement down to the initial breakout point at $0.428. We’re currently quoted slightly above this potential support at $0.433 per coin.

PPCUSDH4-july21

With the trend now to the upside, the first major resistance area is from the round $0.50 level to $0.524. A breakout above here could open the door to the next important level at $0.57. This is a former double top for Peercoin, a breakout above here could lead to more gains.

On the downside, a decisive move below the breakout point at $0.429 would be a cause for worry. But to end the uptrend the bears will have to push prices below $0.376 per coin. Both the medium-term and long-term trends for PPC/USD are neutral.

Namecoin Slightly Up After False Break

Namecoin is trading higher by 0.7 cents or 1.8 percent compared to last Thursday. Similarly to Peercoin, prices broke out on Sunday only to retrace heavily. Unlike PPC, however, NMC fell below it’s breakout point at $0.414, signalling that the break was likely a fakeout. We’re currently quoted at $0.381, almost 8 percent below $0.414.

NMCUSDH4-july21

To renew the lost upward momentum, the bulls will need to break 45 cents per coin. Above here we find resistance levels at $0.476, followed by $0.48 and the 50 cents level. A breakout above this round figure could extend the gains to the swing high at $0.54.

On the lower end, a decisive break below the $0.355 level would end the fledgling trend higher and start a new downtrend. Below here support can be found at last month’s low of $0.324 followed by the round 30 cents figure. The 2015 low at $0.274 is another important support level for Namecoin. A break below here could intensify the losses. The medium-term trend for NMC/USD is slightly bearish while the long-term (monthly) trend is neutral.

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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