The losses for altcoins intensified yesterday after bitcoin cleared the support near $234 per coin. Prices fell from $232 to $219 in four hours before stabilizing somewhat. This had a knock-on effect on smaller cryptocurrencies. Litecoin lost 10 cents or close to 7 percent during that same period while Namecoin fell by 4.4 percent. But let’s start with an analysis on Peercoin.
Peercoin Tests Yearly Lows
Last week we left PPC at $0.308, just above the 30 cents support level. Since that update, Peercoin broke below the range low and hit a new yearly low of $0.227 on Sunday. But PPC/USD didn’t stay low for long and soon enough the crypto traded back above the $0.24 mark.
For the past two days Peercoin has been trading around this important mark, unable to clear it and head lower. Just as a reminder, 24 cents is the January 15th swing low for PPC/USD as well as a multi-year low. If the bears manage to clear this support and head lower, the losses for Peercoin could intensify. Notable support levels below here include the Sunday swing low at $0.227 and the round figures at $0.20 and $0.15. To end the current downtrend, the bulls will need to push prices back above $0.352 per coin.
Namecoin Losses Continue
After breaking its yearly low of $0.379 last Tuesday, the floodgates opened for Namecoin. On April 7th the altcoin fell by 5.2 percent. This was followed by another fall of 5 percent the next day. While the losses moderated during the next couple of days, NMC/USD lost ground in each of them, extending its losing streak to 8 consecutive days. The daily chart below shows this long streak of black candles.
In percentage terms, Namecoin has lost 23 percent since April 6th. While the decline seems overdone, don’t forget that trends can remain overextended for long periods of time. This is especially true since bitcoin only broke its support yesterday. More losses may follow for big brother in the next few days, thereby putting pressure on Namecoin prices. If you’re bearish on NMC/USD, a conservative approach would be to wait for a break below the new low at $0.274. If Namecoin can clear this support, more losses may follow. Notable support levels below here can be found at the $0.20 and $0.15 round figures. To end the downtrend, NMC will need to climb back above the $0.424 swing high.