Peercoin is displaying a classic sine wave motion, as consolidation takes hold. The bulls and the bears are fighting for supremacy, and I can tell you one thing, the pattern is most likely going to continue for the rest of the day.
Let’s take a closer look at the PPC/USD chart on the H1 timeframe below (click to expand):
The first thing we notice is the M (or W) shaped pattern, marked in blue, being held together by the red horizontal support line at around 2.57, which in my opinion is going to lend itself to a triple bottom.
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If we focus on the four bear candles marked in yellow ellipse, we’ll see how each one of them were extremely bearish for three main reasons. One, they all had long bodies, two, they possessed upper wicks without any lower wicks.
Yet, despite this extreme bear candlestick pattern, the market adhered to the current sine wave taking place and we saw another bounce off the red support line just as had occurred twice before over the past couple of days. This is further evidence of the power of support and resistance, where it can halt a potential strong move in its tracks.
So we’ve established that the support at 2.57 is fairly strong, at least for the short term, and as mentioned above I think it will stay firm for at least a few hours yet, since, we also have other technicals lining up to provide the bulls with further strength, such as the Stochastics now approaching an overbought position, along with both the Accelerator Oscillators turning green.
I’d expect the Awesome Oscillator to follow suit very soon as well.