Namecoin falls down to 2.1, before rising back up to 2.2, but are we about to see another test of 2.1? It certainly looks like it.
If you remember during my previous NMC/USD analysis, I posted this chart below:
Where I explained,
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“…extreme spinning tops, possessing long upper and lower wicks – this tells me the bulls could be exhausted, and we’ll probably see price fall within the next few hours…”
And soon after, price fell fast, further than I initially envisaged, dropping all the way down to just below 2.1, which if we observe the latest NMC/USD chart below (click to expand):
Then we can see it’s the 61.8% Fibonacci retracement level, circled in blue, when we apply the Fib study from the two natural points, on the Daily timeframe, i.e. from the year low at 1.34 until the month high at 3.35.
After testing 61.8% at 2.1, price did hike a little, but it seems the bears have regained control for the time being, and I fully expect, as mentioned at the top of this analysis, for there to be another test of the 61.8% Fib – later this afternoon in all likelihood, since we have a number of corroborating technicals, including the Stochastics heading down, above oversold territory, with the Accelerator and Awesome Oscillators as red.