NMC/USD Technical Analysis – 23rd April 2014

Namecoin may have loved every minute of its intense sharp rise, reaching a climax during mid April, but unfortunately it's now feeling the blues, rather than the bulls.

I mentioned during yesterday's NMC/USD analysis, that "Namecoin continues to hover around 2.5 this week, carrying on from last week, although we could see some bears pick up momentum fairly soon." Perhaps I should have rephrased that to, "very soon". This was the chart I posted (click to expand):

"the bears will very likely push price down again – my guess is to at least the 50% at 2.345, possibly this week."

Well, let's take a closer look at the current NMC/USD Daily chart below to see what happened (click to expand):

I've performed the same Fibonacci study, i.e. from the year low at 1.34 until the month high at 3.35. As we can see, price as indeed come down to 50% at 2.345, testing it to the very pip , before bouncing back up a little. The key question now is, will 50% hold? Possibly, but even if it doesn't, I can still see 61.8% providing enough support for this week.