Last piece of the day and the week will be about the ForexNewsNow newbie – Namecoin, which will be analysed on our portal for the first time. Definitely not the last, as we can see that this pair is showing a huge respect to the technical analysis and price action rules.
Major sell signal here, was created in the end of May, when the price broke the lower line of the triangle. NMC entered the bearish trend supported by the green down trendline, which was used for a bounce many times. After they broke the red dynamic support, the price then crashed two horizontal ones: 1.86 USD (black) and 1.60 (blue). The second one, was already tested as a resistance and thanks to that, the sell signal is confirmed.
In our opinion, the price should continue to decline. We do not have any signals of a possible reversal. The first ray of hope can be the breakout of the down trendline but chances for that are now limited.