After staying unaffected by the major bitcoin rally for two weeks, Peercoin and Namecoin are finally starting to take notice. Both cryptocurrencies have now joined bitcoin in uptrends with Peercoin up by 25 percent compared to the prices noted in our last article while NMC is trading higher by 15.2 cents, or 43% in percentage terms.
Peercoin Rallies by 45 Percent
Peercoin staged a strong rally last week, hitting a high of $0.579 yesterday. This was a gain of 45 percent from the $0.40 rally starting point. But as we can see on the chart below, we’ve had a major retracement since then and PPC/USD is currently quoted at $0.456, ”only” 14 percent above the breakout level.
Last week we said that the chances for a sustainable PPC downtrend are low while bitcoin is in full rally mode: ”While so far there has been no spillover effect, it’s hard to see large PPC/USD declines while bitcoin is in a strong uptrend.”
This statement still holds true, the fate of the PPC rally is now closely tied with bitcoin, with a small caveat. Both Peercoin and Namecoin traded weak until the BTC uptrend lifted all ships last Thursday. Due to this, it’s possible that a bitcoin downtrend could have a disproportionate effect on these crypto-currencies. For example during the large BTC correction today, bitcoin fell by $95 dollars or 20 percent. Meanwhile PPC/USD crashed by almost 29 percent while NMC/USD fell by 35%, when measured high to low.
The important levels for Peercoin start with some resistance at the round $0.50 figure. But a much stronger level to beat will be yesterday’s high at 58 cents per coin. A decisive break above here should continue the bullish momentum. On the lower end, some support can be found at the $0.40 breakout point. But the rally will technically remain in place until the $0.333 swing low is broken.
Namecoin Surges 88 Percent before Correction
Compared to last week, Namecoin prices surged by over 88 percent to hit a high of $0.666. From the breakout point at 41 cents, this was a gain of $0.156 or 38% in percentage terms. A large correction took NMC/USD down to $0.428 today. The crypto is quoted right at the 50 cents mark at the moment.
What’s next for Namecoin? Similarly to Peercoin, the fate of the NMC rally hangs on big brother bitcoin. A decisive break below $290 dollars in BTC/USD will likely end the current rally. The Namecoin levels start with $0.55 on the upside but a stronger resistance can be found higher at the $0.666 mark. A breakout above this swing high could re-start the bullish momentum.
On the downside, support can be found at $0.463 (weak level) followed by the 41 cents breakout point and the $0.40 round figure. While a move below 40 cents should be a cause for worry to the bulls, the rally will technically remain in place until the double-bottom at $0.332 is taken out.
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.