It’s been an interesting two weeks for Peercoin and Namecoin. We used to cover these two cryptocurrencies every Thursday. But with rising prominence of Ether and Dash it’s only fitting to include these altcoins in our weekly analysis. Now we will cover PPC and NMC on a rotational basis, one week on, one week off.
Namecoin Flash Crashes to 15 Cents
Namecoin has been under pressure for several weeks, slowly drifting down to the 27-28 cents support area. Two weeks ago we identified these levels as important support. It’s not a surprise that as soon as this support was broken, prices flash-crashed to $0.153 dollars per coin. It’s likely that there were lots of stop orders right below here because like we said on August 18 last year’s low is at $0.274 and ‘a decisive clearing of this support area would switch the long-term trend to the downside as well.’
We’re now 11 days after that flash-crash. Prices immediately recovered back back to that 27 cents level. But the bulls have been struggling to clear the 30-31 cents resistance area. A decisive breakout above here would end the short-term NMC downtrend. Higher up we have resistance at the $0.346 swing high followed by $0.371 and the 40 cents round figure.
On the downside, we have major support in the 27-28 cents area. Potential support below here can be found at the $0.25, $0.20 and $0.15 round figures. That last one coincides with the flash-crash low at $0.153 dollars per coin. Trends on both the monthly and the weekly charts have now switched to the downside.
Peercoin Ends Downtrend
Alternative crypto-currency Peercoin shared a similar faith with Namecoin. Both altcoins flash-crashed on August 21st, only to recover all losses. In the days that followed however Peercoin did much better, rallying to a high of $0.386 dollars per coin.
This effectively killed the downtrend that was in place for the last several weeks. The short-term picture now looks neutral. We will need to see a clearing of that 39-40 cents resistance area to spark a new uptrend. Resistance levels above here can be found at the $0.438 swing high, the 50 cents round figure followed by $0.524 dollars. A breakout above could open the door to the next important resistance at 57 cents. The medium-term trend for PPC/USD is bearish while the long-term trend is still neutral.
On the lower end, the hurdle to starting a new downtrend is now much lower at the $0.237 spike low. Below here we find the multi-year low at $0.211 dollars per coin. A break of this important handle could intensify the losses for Peercoin.
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.