All four major cryptocurrencies, bitcoin, litecoin, peercoin and namecoin, have ended their downtrends in the past five days. For BTC/USD and LTC/USD the end came on September 6th, with a decisive break above $231 and $3 respectively. For Peercoin and Namecoin the downtrend stopped one day later on the 7th of September, with a break above the previous high at 38 cents for PPC and 43 cents for NMC. We noted both of these levels as trend stoppers in our previous update on the two cryptocurrencies.
Peercoin Rallies 44 Percent
With a massive rally of 13 cents or 44 percent from the $0.291 low, PPC/USD put an end to the losses. One coin is currently selling for 38.9 cents, 34 percent higher from the August 25th low.
What’s next for Peercoin? The large rally of 44 percent actually triggered a new bull market, on a technical basis. But caution is advised. At this point the gains are already very large in percentage terms. Also as we’ve repeated few times before, downtrends rarely switch directly into successful uptrends, without a longer consolidation period in between. For PPC/USD the trend end was on the 7th while the new technical break higher started right after on the 8th of September.
A better scenario for the bulls would be to wait for a decisive break above the 43 cents level. On September 8th we got close when prices topped out at $0.422. Above $0.43, the next important resistance can be found at 46 cents. This level was a previous important support. The latest PPC downtrend started when prices broke below it on August 8th, as noted in this article. With Peercoin now below the mark, this level should turn to resistance. Higher still, the round $0.50 mark may also put at lid on prices, at least temporarily. On the lower end, we will need to see a break below the $0.291 swing low to re-start the downtrend.
Namecoin Ends Downtrend
After a rally above 43 cents, alternative cryptocurrency Namecoin ended its downtrend as well, joining the other three major cryptos in limbo. We are currently quoted at $0.418 for one coin. To change things up and start a new uptrend, we will need to see a clean breakout above the $0.463 swing high. Higher up, the round $0.50 level may also act as resistance, followed by $0.55, a previous support now turned to resistance.
On the lower end, the threshold to start a new downtrend is set at the 30 cents level. Below it we find a cluster of weaker support levels near the previous swing lows at $0.274 and $0.286. A decisive break below 27 cents should lead to more NMC losses.