Is Peercoin (PPC) a buy or sell in June?

By: Stanko Iliev
Stanko Iliev
Stanko dedicates himself to providing investors with relevant information they can use to make investment decisions. He loves the… read more.
on Jun 13, 2021
Updated: Jun 14, 2021
  • Peercoin has collapsed from its recent highs
  • If the price falls below $1, we have the open way to $0.8 or even to $0.5 support
  • Authorities in China's Qinghai province instructed cryptocurrency mining projects to shut down

Peercoin PPC/USD remains under pressure; in less than several weeks, the price of this cryptocurrency fell from $5.66 to $1.04, and the current price stands around $1.16.

Fundamental analysis: Peercoin is a truly unique project with big potential

Peercoin is one of the earliest pioneering blockchains and the first blockchain that allows its protocol rules to be governed directly by its users. Stakeholders of Peercoin (coin owners) wield influence over the network, produce new blocks, and secure the chain.

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Peercoin uses Proof-of-Stake for network security and Proof-of-Work for distribution to solve the problem that the overall coin supply does not get concentrated in the hands of a small number of people.

New coins are generated based on the holdings of individuals, so for example, if you hold 2% of the currency, you will be able to generate 2% of all proof-of-stake coin blocks. In this way, the Peercoin network is more decentralized and democratic, while the efficiency strengthens by growing the number of individuals.

Peercoin is an alternative consensus protocol to Bitcoin’s proof-of-work that requires less amount of energy to support the network. Instead of using a mining process, Peercoin selects nodes based on how many coins are being held in an individual’s virtual wallet.

Peercoin is a truly unique project with big potential; the popularity of this project is rising across the globe, while more and more exchanges are offering this cryptocurrency. Despite this, Peercoin has collapsed from the recent highs registered in the third week of May, and probably it is not the best moment to invest in this cryptocurrency.

The whole cryptocurrency market is pressured by the fall of Bitcoin, as the BTC weakened again below $35,000 support this Sunday.

“Authorities in China’s Qinghai province in northwest China and a district in adjacent Xinjiang instructed cryptocurrency mining projects to shut down this week. Xinjiang is China’s largest bitcoin mining center, home to about a third of total computing power, and Qinghai is the ninth-largest,” Reuters reported.

Technical analysis: $1 represents a strong support level

The cryptocurrency market is losing its value this trading week, and the price of Peercoin can easily back below $1 support.

Data source: tradingview.com

The critical support levels are $1 and $0.5; $2, $2.5, and $3 represent the important resistance levels. If the price falls below $1, it would be a firm “sell” signal, and we have the open way to $0.8 or even to $0.5 support.

On the other side, if the price jumps above $2, the next price target could be around $2.5.

Summary

The cryptocurrency market remains under pressure; Bitcoin went below the $35000 price level this Sunday, which also negatively influences the price of Peercoin (PPC). The price of Peercoin can easily back below the $1 support level, and probably it is not the best moment to buy this cryptocurrency.

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