Both Peercoin and Namecoin broke out during this week. The two crypto-currencies tested their multi-year highs yesterday but have since fallen back a bit.
Peercoin Starts New Rally
With the break above $2.30 PPC/USD is now back in a new uptrend. Yesterday a high of $2.621 was hit on FXOpen, almost matching this year’s high at $2.62 dollars per coin.
We have since retraced down to the $2.30 area which is where we find PPC at the moment. By the old trading ‘adage’ that says resistance becomes support, we may encounter some buying pressure around here. Further down more support can be found at the $2 round figure followed by the $1.70 swing low. A breakdown below here would end the current rally. A new downtrend needs a move below the $1.60 level as well.
Higher up the major resistance is the double top around $2.62 dollars. A clean breakout above here could extend the gains. On the longer-term charts, both weekly and monthly, PPC/USD is in bullish mode.
Namecoin Gains Ground
Namecoin gained ground compared to last week. On June 18th prices broke above the important resistance level at $2.29 but struggled to follow-through at first, stalling at the $2.33 mark. It took three days to burst through and clear this resistance area but by June 20th a high of $2.692 was hit. This is very close to the multi-year high at $2.73 dollars per coin.
With the clean break above $2.33 we’re now in a new uptrend. The first major resistance is an area stretching from $2.69 to $2.73 dollars. A breakout above here could lead to more NMC gains. On the weekly and monthly charts NMC/USD is bullish as well.
Lower support can be found around the $2.30 – $2.33 area, which is where we are trading at right now. But the rally remains intact until the $1.70 level is ‘taken out’ as well. More support can be found at the $1.50 round figure, followed by the $1.08 lows and another round figure at the $1 parity level. This is closely followed by the former resistance (now turned support) at 98 cents. A clearing of this support area should lead to extended losses for Namecoin.
Bitcoin Remains Range-bound
Bitcoin hasn’t made much progress since our last article as prices remain range-bound here. A new uptrend needs a breakout above $2,890 level while a new downtrend is possible with a clean move below $2,250. Until one of these levels is broken, we remain in ‘wait and see’ mode here.
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.