The unrelenting bitcoin rally is finally spurring some buying in the altcoin market. Both Peercoin and Namecoin have switched from downtrends to uptrends and are now trading substantially higher since our last update.
Peercoin Follows BTC Higher
After ignoring bitcoin’s ongoing rally for a long time, alts seem to be finally waking up. Peercoin is currently quoted at $0.273 per coin, a 30 percent gain compared to our last update two weeks ago. With the latest gains, PPC/USD managed to break the downtrend and enter into rally mode.
Resistance on the way up can be found at the November swing high of $0.277 closely followed by yesterday’s highs at $0.284. Higher still we have another former swing high at $0.29 and of course let’s not forget the 30 cents round level. This figure could stop advancing prices, at least for a while. A decisive breakout above $0.30 could lead to more gains.
To end the current uptrend the bears will have to push prices below the $0.223 swing low. A resumption of the downtrend requires a break of the 20 cents figure as well. While the short-term charts for PPC/USD are bullish, the longer-term charts are mixed. The medium-term (weekly) trend is still slightly bearish while the long-term (monthly) trend remains neutral.
Namecoin Surges 33 Percent in One Day
Similarly to PPC, Namecoin prices also followed BTC higher. Peercoin prices surged 6 cents or 33 percent on December 23rd. That was the same day the three-month long NMC downtrend finally ended. It was also the start of a new rally for Namecoin.
We are now quoted at 26.6 cents per coin, a gain of over 56 percent compared to two weeks ago. On the way up we have several weaker resistance levels at $0.292 (yesterday’s high), $0.297 (former swing high) and the $0.30 round figure. A decisive breakout above this resistance area could usher in further NMC gains. The five-month high at $0.32 could also present some challenges to the bulls.
On the lower end, a move below the $0.208 swing low is needed to end the current rally. A breakdown below last month’s low at 16 cents would restart the downtrend. The longer-term charts are mixed for Namecoin as well. While the short-term daily charts are pointing up, the weeklies have moved back into neutral mode. The monthly charts are still bearish.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about making your money go further with FXOpen.
*Cryptocurrency CFDs are not available to Retail clients in the UK