Failed Breakdown for Namecoin, Peercoin

FXOpen

Namecoin and Peercoin continue to be dragged down/up along with BTC prices. The two cryptos crashed during the May 26th/27th bitcoin dumping but has since recovered nicely as the big brother made new highs.

Namecoin Prices Remain Range-bound

Namecoin prices remain range-bound after a failed breakout to the downside. The correlation between BTC/USD and NMC/USD is still high. We can expect Namecoin to continue being the ‘victim’ of bitcoin’s fortunes. If you already have a bitcoin position keep in mind that you may be doubling your exposure with a NMC trade in the same direction.

nmcusdh4-june8-copy

Technically we have settled back into ”no man’s land” as can be seen on the charts above. A new uptrend requires a break above the $2.33 swing high. Not far from here we have our first resistance at the $2.349 swing high, followed by the multi-year highs at $2.727 dollars per coin.

On the lower end, a new downtrend needs a clear break below the $1.08 lows. Support below here can be found at the $1 round figure, closely followed by the former resistance (now turned support) at 98 cents. A clearing of this support area should lead to more NMC losses.

Peercoin Follows BTC Higher

Similarly to Namecoin, correlation to BTC remains high in PPC/USD as well. On the chart below we see the familiar pattern of losses on May 26th/27th followed by a recovery as bitcoin rallied back.

ppcusdh4-june8-copy

A new PPC uptrend needs a clean move above $2.30 dollars per coin. This is slightly above this month’s high at $2.293, a notable resistance level. Higher up more resistance can be found at the $2.50 round figure and the multi-year high of $2.616.

On the downside, the low to ‘beat’ is $1.079. A decisive break below here would restart the downtrend. Support can be found at the $1 parity level followed by the previous swing high at $0.973. A clearing of this support area could extend the PPC move lower. The previous resistance at $0.863 should now act as support to falling prices.

Bitcoin Retraces From Highs

Because alts like Peercoin and Namecoin are very correlated to bitcoin let’s do a small update. In the past two days, we had a retracement in BTC/USD down to a low of $2,580 from the $2,848 all-time highs. This doesn’t invalidate the uptrend yet. For that, a move below the $2,000 round level is needed. For more on bitcoin, take a look at our previous update.

Open a bitcoin trading account with FXOpen.

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.

*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.

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

Crypto CFD Trading with FXOpen

Crypto CFD Trading with FXOpen

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

  • Access over 40 markets 24/7
  • Trade with tight spreads and low commissions
  • Choose from 3 trading platforms: MT4, MT5, or TickTrader
Learn more

Latest articles

Gold Price Plunges After Climbing to $3,500 for the First Time
Commodities

Gold Price Plunges After Climbing to $3,500 for the First Time

As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
Shares

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report

On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.

Moreover, the price is

1-Minute Scalping Trading Strategies With Examples
Trader’s Tools

Four 1-Minute Strategies for Scalpers

Scalping is all about speed, precision, and quick decision-making. For traders who thrive in fast-paced environments, 1-minute strategies offer a way to engage with the market. But with such a short timeframe, trading requires a clear plan and sharp execution.

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.