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30% Price Drop Drives Notcoin (NOT) Holders to Abandon Telegram Coin Ship

2 mins
Updated by Daria Krasnova
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In Brief

  • On-chain data confirms Notcoin sell-offs, which has led to a mass exodus of holders.
  • Interestingly, large investors in NOT are also involved in the widespread distribution.
  • The token's market structure on the daily chart shows signs of further price decline.
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The excitement surrounding Notcoin (NOT), a once-promising Telegram-based tap-to-earn project, has significantly declined in recent weeks. This dip in sentiment is likely tied to the token’s disappointing price action. 

Once a top performer among the top 100 cryptocurrencies, NOT’s value has dropped by 30.76%. But instead of buying the dip, the cryptocurrency holders appear to be abandoning the ship.

Investors Flee Notcoin Following Month-Long Decline

On August 19, Notcoin’s price jumped to $0.011. This increase sparked speculation that the token could hold onto the hike. However, BeInCrypto’s on-chain analysis found what led to the short-lived upswing.

According to IntoTheBlock, the average holding time of transacted coins on Notcoin’s network has dropped by nearly 62% over the past week. Additionally, the volume of transacted coins over the last 30 days has declined.

The “Coins Holding Time” metric tracks how long a cryptocurrency is held before being sold or transacted. When this metric rises, it suggests holders are reluctant to sell, leading to price stability or growth.

Read more: 5 Top Notcoin Wallets in 2024

Notcoin Coins Holding Time.
Notcoin Coins Holding Time. Source: IntoTheBlock

However, the decrease in NOT’s holding time reflects growing selling pressure and diminished confidence in its short-term potential.

Furthermore, blockchain analytics reveal that retail investors aren’t the only ones selling NOT. The Bulls and Bears indicator shows more bears than bulls, signaling increased selling activity.

In this context, bulls represent addresses that bought 1% of the total trading volume, while bears are those selling 1% of the volume. If this trend persists, Notcoin may struggle to recover from its 30% decline.

Notcoin Bulls and Bears Indicator
Notcoin Bulls and Bears Indicator. Source: IntoTheBlock

NOT Price Prediction: Another Drop Imminent

Notcoin’s technical setup below highlights the failure to break the bearish market structure. At press time, the cryptocurrency trades at $0.010.

Furthermore, the price is attempting to flip the 20-day EMA (blue) but remains clearly below the 50 EMA (yellow). EMA stands for Exponential Moving Average and measures a cryptocurrency trend direction over a period of time.

When the price is above the EMA, the trend is bullish. But since NOT’s price is below the short to mid-term indicators, the trend is bearish. Apart from that, the formation of a death cross, which is shown by the crossover of the longer EMA above the shorter one, gives credence to the bearish bias.

Read more: Where To Buy Notcoin: Top 5 Platforms In 2024

Notcoin Daily Analysis.
Notcoin Daily Analysis. Source: TradingView

Additionally, the On Balance Volume (OBV), an indicator that gauges buying and selling pressure, is flat. This implies that NOT is starved of accumulation. 

Unless Notcoin’s market structure improves, the cryptocurrency’s price may drop to $0.0084. However, if market participants deem it fit to buy the dip and the price rises above the 20 EMA, the trend may reverse. Should this be the case, NOT’s price may reach $0.012.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Victor Olanrewaju
Victor Olanrewaju is a technical and on-chain analyst at BeInCrypto, where he monitors the activities of mid- and large-scale investors, commonly known as crypto whales, to detect investment trends across diverse cryptocurrencies, including Bitcoin, altcoins such as Solana, XRP, Cardano, and Toncoin, as well as meme coins like Dogecoin, Shiba Inu, and Pepe. Additionally, he covers emerging trends including Tap-to-Earn games, AI tokens, and real-world assets (RWA). Before joining BeInCrypto...
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