The crypto-market is back into undecided territory after bitcoin ended it’s rally. Prices broke the $300 barrier today, putting an end to the (almost) month-long rally. The uptrend started back on October 14th when BTC/USD broke out above $250 dollars. Bitcoin is currently trading at $314 dollars per coin.
Peercoin Ends Rally
Peercoin ended its short-lived uptrend after prices had a major reversal from the highs, prompted by BTC losses. We topped out at $0.579 on November 4th and we are currently quoted at 37 cents flat, a massive 36 percent lower.
In our last week’s article, we warned our readers that a bitcoin downtrend could have a disproportionate effect on PPC/NMC. Both altcoins traded weak and only got a lift once the bitcoin rally was fully underway. With bitcoin reversing course, it’s not a surprise to see all earlier PPC gains disappear.
What’s next for Peercoin? A decisive break below the 32 cents mark would technically start a new downtrend. Here we have a confluence of several previous lows and potential support levels at $0.333, $0.324 and $0.321. A clean move below 32 cents would clean this entire support area and maybe lead to more losses going forward.
But due to the recent end of the uptrend, caution is advised. Markets rarely switch from bull to bear on a dime, without some period of consolidation in between. Below $0.32 more support can be found at the round $0.30 figure, followed by $0.291. Further down, we have some support at the previous swing low of $0.275, followed by this year’s low for PPC at $0.212. On the upside, the hurdle to a new uptrend is set much higher at $0.579 dollars per coin.
Namecoin Falls 42 Percent From Highs
Namecoin prices fell a fantastic 42 percent from the $0.666 highs this week. One coin is selling for $0.381 right now. The NMC rally is over as well.
To restart the uptrend, the bulls have to climb all the way back to $0.666. That doesn’t seem likely in the near future, given how far we are from the highs at the moment.
On the lower end, the technical start of the downtrend would be on a break below the $0.33 double bottom. But similarly to Peercoin, caution is advised. It’s unlikely that we will get a sustainable NMC downtrend before some consolidation lasting at least several days. Below 33 cents, the next support can be found at the $0.306 August lows, closely followed by the round 30 cents figure. The year’s low for Namecoin at $0.274 should also offer some support but a break below would intensify the losses.