Peercoin has hit a bit of a brick wall this afternoon.
Lets take a look at the hourly chart below (click to expand).
You can see how price is struggling to break past the 50% Fib level. For a number of reasons. Firstly, apart from being a 23.6% Fib retracement level, it’s a natural resistance point as well, due to the earlier resistance shown there on the 15th (circled in green). Also, we see how this afternoon price struggled beyond the upper Bollinger line, which was again at that same 23.6% level. At the same time, Stochastics were now crossing down whilst being undersold, and the Accelerator Oscillator had turned red.
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However, these are far from the only reasons as to why price will probably not ascend much further over the next couple of days. And that’s due to the monstrous resistance found by way of the white trendline I’ve drawn below (click to expand), on the H4 chart.
Look at the number of times price has tested the trend line, (circled in red). Having said that, other indicators tell us there could be a conflict, because you’ll see how the Stochastics are now crossing up whilst being slightly underbought, and that both the AC and the AO are looking bullish.
However, I expect the apparent conflict will not be applied in actuality, or if at all, it will probably only supply minimal upside. Rather, I expect that price will continue to fall over the next few hours.
Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.