Analysis provided by Ashton Fraser, learn more about his trading strategies with the Forex Reversal indicator.
Peercoin is hanging around an important Fibonacci level right now, but we may see a small drop later today.
Let's take a closer look at the PPC/USD H1 chart below (click to expand):
I've performed the Fibonacci study from March's high on the 4th at 3.888, until this week's low at 3.110.
It's clear that price is not wanting to wander above the 23.6% retracement level, and not only because it's a Fibonacci level - it's also at a psychological number - 3.300. Not as strong as a whole number, but significant nonetheless, especially if there are other factors.
We also have the Stochastics pointing down, and the Accelerator and Awesome Oscillators have turned red.
In addition, we have a downwards trendline formed within the past week (click on M30 chart below to expand), and I envisage this to be also playing a role in preventing price from increasing.
So for me, with all these technicals combined, it's pretty clear where price is headed short term, and that's south. However, seeing as though general movement has been rather sluggish in recent hours, I don't expect a large movement. Perhaps Peercoin may hit 3.25 later today, if not tomorrow.
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