Cryptocurrencies are continuing the downward spiral. Since our last update two days ago, bitcoin broke the $332 swing low. After a short struggle with the bulls, the second swing low at $319 also gave way, opening the door for $300. We are currently quoted at $308.72. As expected, bitcoin’s decline reverberated across the cryptocurrency space, sending Litecoin and Peercoin to new 2014 lows.
Namecoin Joins the Downtrend
Despite the Namecoin rally on Monday, the fall in BTC prices sunk all ships. On Tuesday we said: ‘’ Despite Namecoin’s gains yesterday, the cryptocurrency should continue to trade in tandem with bitcoin’s fortunes. If BTC/USD falls below $330, it will be hard for NMC bulls to keep supporting prices.’’ As big brother broke $330 and $319, NMC/USD broke $0.85 and then $0.80.
We are currently trading at $0.781 per coin, just 3 percent away from Namecoin’s 2014 low at $0.751. A decisive move below $0.75 could exacerbate the losses. On the top end, a climb back above $0.90 may end the current downtrend, although the major driver will continue to be bitcoin. If BTC/USD rallies (and stays) above $335, cryptocurrencies across the board will likely stabilize.
Peercoin Hits New 2014 Low, $0.50 Eyed
Alternative cryptocurrency Peercoin hit new lows yesterday, breaking past the $0.565 figure. The crypto is quoted at $0.540 at the moment, 7 percent away from the half-parity level at $0.50.
A move below $0.50 could lead to more losses for PPC. To end the weakness, Peercoin will need to climb back above $0.74 per coin. As was the case with Namecoin, PPC will continue to be greatly influenced by bitcoin. A bitcoin move below the $285 swing low may give the impetus needed for a break of $0.50.
Litecoin Breaks $3 Per Coin
Litecoin has been hit especially hard by the latest down move, losing over 17 percent this week alone. Prices are currently trading at a new 2014 low of $2.82.
Litecoin may encounter some support at the $2.50 and $2 round figures. But largely speaking we are now in uncharted territory on the downside. For clues on further losses, watch at Bitcoin’s support levels at $300 and $285. On the top end, a Litecoin breakout past $3.40 should end the current downtrend.
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.
*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.
