Similar to other crypto currencies, Namecoin saw a swift drop over the first part of this week. I explained how we would likely see a touching of a certain Fibonacci extension level.
Right now though, we’ve seen things settle across the board, with price ranging within a fixed range.
Looking at the NMC/USD chart below on the four hour timeframe (click to expand), we can see exactly what’s happening:
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I’ve performed the Fibonacci study from the high of the month at 2.45, to the low of the month at 1.66.
The downtrend’s halt was as quick as the actual decline. A good indication of when there’s a sudden halt is by looking at the Awesome Oscillator, since it can lag when something like this happens, in this case, we can see although there was a significant retrace, the AO was still red for a number of candles well into the retrace.
However, it’s the Accelerator Oscillator in moves such as these that provide great benefit. This, in conjunction with the 161.8% Fibonacci extension I mentioned in my previous analysis, gives us an idea of a fresh retrace.
In this case, we saw how price retraced back to the 38.2% Fib level, and it’s actually been trying to surpass that ever since, with a succession of candlesticks being told they’re unable to pass.
With the Stochastics still heading up and far from being overbought, along with the Awesome showing bullish signs, I expect further tests over the next few candles, although, now that we have the AC as red, there may be a drop to the 23.6% Fib level at 1.85 before 38.2% is tested again.