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.

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.

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, 30% margin call, 0.01 lot minimum transaction size with no maximum — 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.