A Technical Look at Altcoins

FXOpen

My last article on altcoins called ‘’Bitcoin Feeds on the Tears of Altcoins’’ (/bitcoin-feeds-on-the-tears-of-altcoins/) tried to make the case that despite the large gains seen in BTC in May, altcoins will not be coming for the ride this time. A month and a half later and a lot has changed in Altcoinia. The Ripple fiasco decimated confidence in alternative currencies. Bitcoin’s silver, Litecoin, lost over 50% since May of this year, with most of the losses transpiring in June after my article was written.

A Technical Look at Altcoins

On July 2nd, LTC/USD flash crashed to a low of $3.05. The fall was the result of the depletion of the order book and prices soon recovered to over $6 a piece in the next hour. Still, the move demonstrates just how vulnerable altcoins still are. But where are we going from here? Let’s look at the technical picture.

Litecoin Undecided

From a technical standpoint, litecoin looks undecided. The trend is clearly down and has been down since November of 2013, when prices briefly spiked to over $48 per coin. However, since the flash crash on July 2nd the momentum has shifted to the upside. We need to see how things play out from here before committing on either side.

A Technical Look at Altcoins

Peercoin Poised for More Losses

Peercoin prices are again knocking on the important $1.3 figure. The level marked the low in the crypto back in April when PPC/USD fell to $1.280. It was subsequently tested on two more occasions, once in late June, and recently few days ago. The constant slow creep toward $1.3 means that a break below this figure is likely going forward. With the thin orderbook and a downward momentum in play, we wouldn’t be surprised to see Peercoin fall to $1 per coin on a significant break below $1.3.

A Technical Look at Altcoins

Namecoin Flat

Namecoin is trading in a range. Prices have been moving back and forth between $2.10 and $1.64 since the middle of June. A break below $1.64 may lead to more losses toward the $1.34 April low. To the high end, an upside breakout over $2.10 may trigger a rally in NMC/USD. The first resistance on the way up is the May swing high at $2.77. This is followed by the April 15th spike at $3.35. However, until prices brakeout and give us a clear direction, stay out of Namecoin.

A Technical Look at Altcoins

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.