Peercoin’s recent hike wasn’t exactly expected, since we’re in the midst of a long term bearish trend, although things are just recently returning to “normal”.
Let’s take a closer look at the PPC/USD chart below on the H4 timeframe(click to expand):
I’ve performed the Fibonacci study from the low of April at 1.7 to the high of the past week at 1.943. Take a look at the candle marked in white, where price reversed. It’s a pretty commanding bull candle. We have a long body, with its lower wick being much longer than its upper wick. So why the reversal here?
We’ll need to do another Fib study to realise this – which actually has already been discussed in my previous Peercoin analysis, (I’ll paste here for ease of viewing)…
Understanding the Gaps in Forex TradingGo to article >>
…where I explained – that price managed to,
“reach 50% at 1.938… slowly ambling with the last five candles all closing as bear candles… thus, I expect price to hit 1.813 within the next few candles.”
We saw this happen within very next candle, and as can be seen on the first chart posted above, price dropped to the 78.6% Fib level soon after.
Right now, price is at the 61.8% Fib level around 1.8 and we could a drop to 78.6% again, given that the Accelerator and Awesome indicators have just turned red.