Both Peercoin and Namecoin are back in a downtrend. In our last article we noted that both cryptos were pushing on important support levels. Late on Tuesday, these support levels finally broke, first on NMC and 3 hours later on PPC/USD.
Peercoin Breaks 40 Cents
Two days ago, Peercoin broke the important support near 40 cents at $0.398. Prices crashed soon after to $0.349 per coin. This is close to the January lows at $0.353. Since that crash we’ve somewhat stabilized but PPC is still far below the 40 cents mark at $0.374 right now.
With the decisive break below $0.398 we’re now in a short-term downtrend. The medium-term trend has also switched to the downside. The longer (monthly) trend remains neutral.
Important support levels below the current prices can be found in the $0.349-$0.353 area followed by the round 30 cents level. Further down the August lows at $0.291 may also act as a barrier to the bears.
On the other end, a break above the $0.442 swing high would both end the downtrend and start a new short-term rally. Higher up we find more resistance at the $0.479 swing high followed by the round 50 cents level. We have more resistance levels on the upside at $0.544, $0.57 and $0.616 per coin.
Namecoin Enters Downtrend
Similar to Peercoin, thealternative cryptocurrency Namecoin entered a downtrend as well. Here the break of the support at $0.412 happened few hours earlier on Tuesday, with prices falling to a low of $0.385. Two hours later the crypto lost more ground as the sell-off in Peercoin started. A low of $0.352 was reached that day. Again similar to PPC, after that initial crash the prices have stayed relatively stable but well below the breakdown point.
We’re now in a downtrend, both in the short-term and medium-term. The long-term trend is still undecided. The first support area for NMC/USD is between Tuesday’s low at $0.352 and the $0.357 swing low. Below here there’s a strong support at the double bottom formation near $0.332, followed by the swing low at $0.306.
On the upper end, a break of the $0.446 swing high would both end the current downmove and restart the bullish uptrend. Above here resistance can be found at the $0.50 round figure followed by the 54 cents level and the March high at $0.633. We find more levels to the upside at the November spike high of $0.666 and the former support (now turned resistance) at $0.751 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