Analysis provided by Ashton Fraser, learn more about his trading strategies with the forex reversal indicator.
Namecoin continues to fall, hitting the 78.6% Fib level as I predicted a couple of days ago, and technicals indicate there’s still some southern movement on the way.
Take a look at the NMC/USD chart below:
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I’ve performed the Fibonacci study from the year’s low on the 25th of February at just above 2.6, to the month’s high on the 4th of March, at 4.15.
I mentioned on the 18th that, “With the 61.8% level firmly broken, and technicals still indicating further bears, I expect Namecoin to drop further until at least 3.000 within the next 24 hours, and then later in the week we can expect a test of 78.6% Fib.”
As we can see, this is exactly what happened. However, I doubt even the 78.6% support can hold for much longer, since the Accelerator Oscillator is still red, as is the Awesome Oscillator, plus the Stochastics are heading down, without yet being fully oversold.
There may be a slight retrace later today however, since price is below the lower Bollinger band, and if a candle closes as a bull candle below the band, often price can jump up, yet any minor jump shall probably be short lived, as the bears are still very strong. Price could hit 2.8 later today or tomorrow.
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