Both Peercoin and Namecoin have switched from downtrend to uptrend during the last seven days. The surge in prices on Sunday helped both altcoins take out crucial resistance levels. Since then, however, we’ve seen limited gains for PPC while NMC gave up all of the gains and then some.
Peercoin Breaks Out
Alternative cryptocurrency Peercoin broke above the important $0.429 swing high on Sunday. In our previous article we noted this level as a potential trend changer. In the initial run-up a high of $0.524 was hit. But since then we’ve seen a major retracement down to the initial breakout point at $0.428. We’re currently quoted slightly above this potential support at $0.433 per coin.
With the trend now to the upside, the first major resistance area is from the round $0.50 level to $0.524. A breakout above here could open the door to the next important level at $0.57. This is a former double top for Peercoin, a breakout above here could lead to more gains.
On the downside, a decisive move below the breakout point at $0.429 would be a cause for worry. But to end the uptrend the bears will have to push prices below $0.376 per coin. Both the medium-term and long-term trends for PPC/USD are neutral.
Namecoin Slightly Up After False Break
Namecoin is trading higher by 0.7 cents or 1.8 percent compared to last Thursday. Similarly to Peercoin, prices broke out on Sunday only to retrace heavily. Unlike PPC, however, NMC fell below it’s breakout point at $0.414, signalling that the break was likely a fakeout. We’re currently quoted at $0.381, almost 8 percent below $0.414.
To renew the lost upward momentum, the bulls will need to break 45 cents per coin. Above here we find resistance levels at $0.476, followed by $0.48 and the 50 cents level. A breakout above this round figure could extend the gains to the swing high at $0.54.
On the lower end, a decisive break below the $0.355 level would end the fledgling trend higher and start a new downtrend. Below here support can be found at last month’s low of $0.324 followed by the round 30 cents figure. The 2015 low at $0.274 is another important support level for Namecoin. A break below here could intensify the losses. The medium-term trend for NMC/USD is slightly bearish while the long-term (monthly) trend is neutral.
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.