Namecoin vs Bitcoin is approaching dangerously close to its low of 2014. Will the support hold?
We need to zoom out to the Weekly timeframe to understand why NMC/BTC is hovering above a massive support zone. Take a look at the chart below (click to expand):
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I’ve performed the Fibonacci study from the last major swing low on the W1 at 0.00115 to the high of the past year at 0.00153. All is revealed, as we see how price is located right now at exactly the 78.6% Fib retracement line.
It’s midweek, and the current candle has hardly moved, telling us the support is holding for now. We also have the Accelerator Oscillator just having turned green, a precursor to a reversal possibly?
Also, the Stochastic Oscillator is in oversold territory. Part of the Stochastic, specifically the K period, is now horizontal, so I’m looking forward to the Oscillator crossing upwards, possibly next week. On the other hand, if there is a break of 78.6%, then it’s going to be very difficult to stop these bears, which have been gaining momentum since the start of the year.