We’re having another slow week for cryptocurrencies. Bitcoin traded in a tight range between $232 and $238 dollars per coin since Monday. Even going further back big brother has been more or less trading flat since the start of May. Most cryptos followed BTC in this range but notably Peercoin buckled the trend by rallying on Tuesday.
Peercoin Rallies to $0.341
Peercoin broke the important $0.267 resistance on Tuesday and surged higher. In our article last week we highlighted this level as a potential breakout point. There is little follow-through on the move however and this is probably due to bitcoin drifting lower during the same timeframe. After reaching a high of $0.341 PPC/USD slowly gave up most of the gains to drop to a low of $0.286 today. We are currently quoted right at the 30 cents mark at $0.299.
What’s next for PPC? The breakout higher may open the door to more gains. Notable resistance levels on the top end can be found at Tuesday’s high near 34 cents, closely followed by the March 23rd swing high at $0.365. Higher up, we find another resistance area between $0.425 and $0.435. Above it, the round 50 cents mark may also act as resistance to rising prices. To end the new uptrend the bears will need to push PPC below $0.227. To jump-start a new downtrend however, PPC will need to clear the 20 cents area.
Note that without bitcoin jumping in the rally, the gains seen in PPC may not last very long. The important resistance level for BTC/USD stands at $250 dollars. If bitcoin manages to rally above, it may have a positive knock-on effect on all cryptocurrencies, including Peercoin.
Namecoin Still Range-bound
Namecoin is still trading range-bound. While the altcoin did have a short-lived sympathy rally along with PPC on Tuesday, the gains didn’t last and NMC is currently trading at 32 cents, not far from the price of $0.31 noted in our article last week.
Since no major levels have been broken during the Namecoin rally 2 days ago, the important resistance/support remain the same. On the higher end, the crypto will need to rally above 36 cents to spark a new uptrend. Notable resistance levels above here include $0.40, followed by the April 16th spike at $0.461. The two bottoms at $0.274 and $0.286 should continue to pose a challenge to the bears. Thus in order to generate a new downtrend NMC will need to make a decisive break below 27 cents.