Both Peercoin and Namecoin tested the important support levels noted in our previous article. The bears were unable to take prices lower and the altcoins have since bounced back somewhat. Still, both of them are down since last Thursday. The rejection at the lows was largely helped by big brother bitcoin rallying $13 dollars to $450 during the past two days.
Peercoin Rally Ends
Peercoin bounced at the $0.40 level after a sizable move higher since Tuesday. The initial move lower took PPC/USD to $0.391 but from here we moved back up to $0.417 dollars per coin.
Peercoin is down by 0.8 cents since Thursday. That’s a decline of only 1.9 percent but it goes to show that prices haven’t made any headway in a week and moved lower instead. This latest dip ended the ongoing PPC rally. The bulls have been trying to string together some gains since we broke out above the $0.44 level on November 29th. But as this article noted early on, the rally was on shaky ground from the start. Almost a month later and Peercoin still hasn’t surpassed the $0.477 high reached on that day.
The two important levels for PPC/USD going forward are $0.378 and $0.477. A decisive breakout beyond either of these price extremes should start a new downtrend/uptrend. A lot will depend on what bitcoin does going forward. So make sure to take a look at our BTC levels below.
Namecoin Retraces Back into Range
Alternative cryptocurrency Namecoin has retraced back into its range. The foray lower stopped exactly at the 40 cents mark, from here we rallied back up to $0.43 dollars. This is still 0.3 cents below Thursday’s price so it shouldn’t be taken as a sign of strength.
On the chart above we can see some of the important NMC levels. The two ”big ones” are $0.40 and $0.50 dollars. decisive break below 40 cents could start a new Namecoin downtrend, potentially opening the door toward the $0.359 swing low.
On the higher end, a breakout above 50 cents could lead to a new NMC rally. Notable resistance levels above are the November 26th high at $0.54, followed by $0.666. Higher up we have another potential resistance at the July swing high of $0.717 dollars per coin.
Bitcoin Rallies $13 Dollars
Bitcoin has clocked some nice gains during the past two days, advancing by $13 dollars to $450 dollars per coin. Resistance levels can be found at the $460 mark (weak) and at the round $500 dollars figure. This is a much stronger resistance for BTC, a breakout above this level may intensify the gains. On the lower end a breakdown below the $423 swing low would end the bitcoin rally.
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.