Litecoin is trading lower compared to our last update. The altcoin lost about 22 cents or just over 7 percent since last Thursday. Namecoin on the other hand bounced at the $0.55 resistance and is currently trading at 47 cents per coin.
Litecoin Declines by 7 Percent
Litecoin declined by over 7 percent since last week. The cryptocurrency traded as low as $2.63, hitting the 23% Fibonacci retracement but missing the 38.2 percent by a good margin. Today we came close to testing the lows with prices trading to $2.6599 before rallying back higher. We are currently quoted at $2.8455.
Last week we cautioned that the rally may have gone too far, too fast: ”The gains have been massive so far and a sharp retracement to the downside can not be excluded. Note that this is only a word of caution to the bulls and shouldn’t be taken as a call to short LTC.”
To renew the upside momentum, the bulls will need to rally above the $3.18 high. Notable resistance levels higher include the former triple bottom at $3.40 (support becomes resistance). Higher up, the round $3.50 mark may also act as resistance to rising prices. To end the current rally, the bears will need to push prices below $2 dollars per coin.
Namecoin Little Changed After $0.55 Bounce
Namecoin is trading little changed since last Thursday. On Friday NMC/USD hit a high of $0.546 before falling back. Since then, the altcoin has made three attempts to go lower but was held back by support near 45/46 cents.
Nonetheless, Namecoin is still in rally mode. To end it, we will need to see a decisive move below $0.35. To continue the move higher, the bulls will need to clear the 55 cents resistance. Aside from being the high of the recent rally, this is also the February high for Namecoin. Further to the upside, the January 26th spike high at $0.653 may also act as resistance to higher prices. This is followed by $0.70, $0.75 and $0.783.
As usual, whenever trading altcoins you should keep one eye on big brother bitcoin. The smaller cryptocurrencies will often mimic the moves seen in BTC/USD. Bitcoin is also in a uptrend but the momentum higher has waned. To see more gains, the bulls will need to take out the $259 high. The BTC rally may end if prices decisively break $233 dollars per coin.
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