As predicted, Namecoin dropped to the first Fibonacci extension today, before rising to a key Fib retracement level. We will need to take a look at different timeframes to get a clearer picture of recent happenings.
Firstly, let’s check out the NMC/USD Daily chart I posted yesterday:
“I’ve performed the Fibonacci study from the last major swing low to the last major swing high on the Daily – what we’re looking for is Fibonacci extensions… if price does indeed break 2.000, then expect a drop to the 161.8% Fib extension.”
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Secondly, below is today’s current chart, with the same Fib extension applied. We can see how price a) closed below 2.000, and b), went on to test the 161.8% Fibonacci extension (circled in blue):
After price touched 161.8%, we saw a small retrace, but we’ll need to zoom into the 30 minute chart to understand what’s been played out right now, see below:
So on this M30 chart, immediately, we can see how price has retraced back to the 61.8% Fib level at 1.91. Right now, price is hovering around the 50% level, but with the Accelerator Oscillator having turned red a few candles back, and the Stochastics in overbought territory, we could see a drop to the 38.2% Fib level very soon, and then perhaps 23.6% later today.