As predicted, Namecoin dropped to the first Fibonacci extension today, before rising to a key Fib retracement level. We will need to take a look at different timeframes to get a clearer picture of recent happenings.
Firstly, let’s check out the NMC/USD Daily chart I posted yesterday:
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“I’ve performed the Fibonacci study from the last major swing low to the last major swing high on the Daily – what we’re looking for is Fibonacci extensions… if price does indeed break 2.000, then expect a drop to the 161.8% Fib extension.”
Secondly, below is today’s current chart, with the same Fib extension applied. We can see how price a) closed below 2.000, and b), went on to test the 161.8% Fibonacci extension (circled in blue):
After price touched 161.8%, we saw a small retrace, but we’ll need to zoom into the 30 minute chart to understand what’s been played out right now, see below:
So on this M30 chart, immediately, we can see how price has retraced back to the 61.8% Fib level at 1.91. Right now, price is hovering around the 50% level, but with the Accelerator Oscillator having turned red a few candles back, and the Stochastics in overbought territory, we could see a drop to the 38.2% Fib level very soon, and then perhaps 23.6% later today.
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