Cryptocurrencies Catch a Break

FXOpen

Cryptocurrencies are getting some breathing room after the relentless selling seen in the past 10 days. Since reaching new multi-month lows on Tuesday, bitcoin is trading higher by $31 dollars or 16 percent. Namecoin rose by over 5 cents, above 16 percent, from its lows. Peercoin is also trading higher but by only 9 percent.

Peercoin Lags Behind the Bounce

Alternative cryptocurrency Peercoin is lagging behind the general market bounce. While most other major cryptos clocked gains of 16 percent, or in Litecoin’s case 17.6%, PPC/USD is only up by 9 percent. Peercoin is currently quoted at $0.318, 2.7 cents from the $0.291 low.

PPCUSDDaily-aug27

What’s next for PPC? As we noted in our last week’s article, support is present at the 30 cents mark. Tuesday’s bounce was near this level, thus confirming the its validity and adding one more layer of support. A decisive break below $0.291 may extend the decline towards $0.275. Here we find a strong support stretching from the $0.267 swing high to the $0.275 swing low. A break below this support level should lead to more PPC losses. On the upper end, a breakout beyond the 43.5 cents level, former support now turned to resistance, may end the downtrend.

Namecoin Rises by 16 Percent

Namecoin rose by over 16 percent from its $0.306 low. We are currently trading at $0.352 for one Namecoin, up by 4.6 cents from the lows. Despite the recent rally, Namecoin, like much of the crypto-market, remains in a downtrend. The bottoming out near the 30 cents mark was somewhat expected, as this was one of the levels offered as potential support in our previous NMC article.

NMCUSDDaily-aug27

The bounce confirms $0.30 as strong support. But a clean break below it may not go very far. There are two important support levels right below it at $0.274 and $0.286. Both of these levels are previous swing lows for NMC/USD. To extend the losses, we may need to see a break below 27 cents per coin. To end the downtrend, the bulls will need to push Namecoin above the $0.514 swing high.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

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.

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