Telegram CEO Pavel Durov’s arrest on August 24 has caused a significant downturn in the value of Notcoin (NOT). The altcoin, which was trading at $0.0088 prior to the incident, has plummeted by 20%. With this increasing selling pressure, NOT faces the risk of dropping to its lowest recorded level of $0.0046, last seen on May 24.
What’s Happening with NOT?
In the wake of NOT’s recent price troubles, the number of active addresses trading the altcoin has sharply declined over the past week. Data from IntoTheBlock reveals a staggering 76% decrease in unique addresses making at least one NOT transaction during this period. Additionally, the demand for the altcoin has seen a downturn, with a 77% drop in new addresses created to transact NOT last week.
When an asset sees a drop in both daily active and new addresses, it usually signals dwindling interaction and weakening market sentiment. Despite this decline, NOT whales have been increasing their accumulation, capitalizing on the situation. The net flow of the token’s large holders surged by 312% over the past seven days. This trend reached a three-month high of 15.33 billion NOT on August 24, following the news of Durov’s arrest, impacting prices of Telegram-related assets.
NOT Chart Analysis
Technical indicators suggest the potential for further downturn in NOT’s value. The Chaikin Money Flow (CMF) has been in a downtrend, hitting a 30-day low of -0.22. A CMF value below zero indicates market weakness, suggesting that liquidity is exiting the market, often a precursor to further price declines.
Moreover, the token’s Relative Strength Index (RSI) sits at 35.50, below the neutral 50 mark. This indicates stronger selling pressure compared to buying activity, supporting the bearish outlook. If the selling continues, the altcoin’s value could drop to an all-time low, possibly reaching around $0.00031. Conversely, a shift in market sentiment and increased demand could push its price towards $0.013.
Key Takeaways for Investors
Investors should consider the following:
- A 76% drop in active addresses indicates waning market interaction.
- A 77% decrease in new addresses suggests falling demand.
- Increased whale accumulation could signal future potential.
- Current technical indicators point to continued bearish trends.
In conclusion, the arrest of Telegram’s CEO has had immediate negative impacts on Notcoin’s value, with significant drops in trading activity and address creation. However, whale accumulation might offer a silver lining for future prospects.