Notcoin (NOT) appears to be stabilizing on the daily chart following a substantial surge. After last month’s significant rise, the price of Notcoin has been on a downward trend as many investors opted to take profits. The increasing bearish trend in the short-term indicates potential signs of a further downtrend. The Relative Strength Index (RSI) is also moving towards the bearish zone, well below the neutral line.
What Do Technical Indicators Reveal?
Technical indicators like the Relative Strength Index (RSI) are crucial in gauging the magnitude of recent price changes to evaluate whether a token is overbought or oversold. Typically, RSI readings above 70 point to overbought conditions, while readings below 30 signify oversold conditions. Given that the RSI is on a downtrend, there are strong indications that Notcoin’s price may continue to show a bearish trend.
Additionally, there is a trend of investors liquidating their risky assets. The Telegram-based token shows that millions have been withdrawn from open positions in the futures market, reflecting a decrease in market participation. Open interest, which refers to the total number of outstanding derivative contracts, has seen a decline.
What Does an 80 Million Dollar Transaction Indicate?
Increasing open positions usually signal rising market participation, offering insights into market liquidity and the strength of price trends. Over the past three days, transactions from open positions exceeded 80 million dollars, causing the total amount to drop to 209 million dollars. Given these data points, it is likely that Notcoin will witness a price drop. The token has already fallen from $0.023 to $0.018 at the time of writing.
Key Insights for Investors
– The critical support level for Notcoin stands at $0.017.
– A drop below $0.017 could potentially send NOT to $0.013, erasing almost all of the 94% increase recorded in early June.
– A bounce from the $0.017 level could help recover recent losses.
– Surpassing the $0.023 resistance could invalidate the current bearish outlook.
Currently, Notcoin holds above the critical support of $0.017. However, a drop below this level seems probable, potentially sending NOT to $0.013. Such a decline could erase almost all of the gains made during the rise at the beginning of June. On the other hand, if the price rebounds from $0.017, it could recover recent losses and possibly climb to $0.020. Moreover, surpassing the $0.023 resistance could invalidate the bearish thesis, opening up possibilities for further gains.
