Bitcoin’s indecisiveness is spilling over into the altcoin market. Everyone’s favorite cryptocurrency has been ranging for the past nine days, stuck between $234 and $253 per coin. Peercoin followed big brother’s range-bound movement. And while Namecoin broke below the low of its range, it is still above the important yearly low at $0.379.
Peercoin Still in Range
Alternative cryptocurrency Peercoin is still trading in a range between a low of $0.30 and a high at $0.50. Since our last update on PPC one week ago, the pair has been stuck between $0.312 and $0.339 per coin. While we have fallen somewhat by 2 cents to $0.318, the altcoin is still trading above its lows.
The important number on the downside remains to be $0.30. A PPC break below here could lead to more losses toward the yearly low at $0.24. A move below 24 cents could unleash a new downtrend in the cryptocurrency. On the high end, we will need to see a breakout above 50 cents for a rally in prices. Important resistance figures above $0.50 can be found at $0.60 and $0.70.
Namecoin Breaks 40 Cents
Namecoin broke the low of its range at 40 cents on Tuesday. The subsequent fall took prices to a low of $0.38 yesterday. We are currently trading just shy of this number at $0.386.
While the break below 40 cents is significant, in our article last week we highlighted another level to watch: ”Namecoin’s yearly low at $0.375 is really close to the range’s low however. If you’re bearish on NMC, a more conservative approach would be to wait for a clearing of the support area from $0.375 to $0.40. This may restart the downtrend and trigger a period of long-term losses”
I made a little error in that article, the yearly NMC low is at $0.379 not $0.375. But other then that, this assessment is still valid, especially after the break below $0.40 failed to produce follow-through. Wait for prices to make a decisive break below the 37-40 cents support area. To jump-start a new rally to the upside, Namecoin will need to break the high of the range at $0.55. Important resistance levels above the high include $0.65, $0.70 and $0.75.