Telegram-linked Notcoin (NOT) has trended under a descending resistance line since July 20. Exchanging hands at $0.0072 at press time, the altcoin’s value has since plummeted by 40%.
However, the odds appear to be shifting in NOT’s favor as market participants have begun to accumulate the token gradually.
Notcoin Sees Resurgence in New Demand
Notcoin’s Chaikin Money Flow (CMF), which measures how money flows into and out of its market, has trended upward over the past week. This has occurred despite the 7% price decline recorded during the same period, forming a bullish divergence.
Market participants view this divergence as a signal of a weakening downtrend, as buyers might be entering the market in anticipation of a price rebound.
Read more: Top 7 Telegram Tap-to-Earn Games to Play in 2024
The token’s positive funding rate since September 12 confirms this outlook. NOT’s funding rate, used in its perpetual futures contracts to adjust its contract price to its spot price, is 0.007% as of this writing.
NOT’s positive funding rate suggests that market participants are optimistic about its future price and are willing to pay a premium to hold long positions. It indicates a bullish sentiment in the market, as more traders are long on the asset than short.
NOT Price Prediction: Bearish Targets May Not Materialize
The setup of NOT’s Parabolic Stop and Reverse (SAR) indicator lends credence to the position above. This indicator, which tracks trend direction and identifies potential reversal points, has its dots resting below Notcoin’s price at press time. When the dots are in this position, it signals a strong bullish trend.
If the bullish momentum persists, NOT’s price could break through the descending trend line and rise toward the next resistance at $0.011. A successful retest of this level could set the token on course for a move toward $0.015.
Read more: Where To Buy Notcoin: Top 5 Platforms In 2024
However, if selling pressure mounts, the bullish projection made above will be invalidated. Notcoin’s price may fall $0.0070 to revisit its all-time low of $0.0050.
Trusted
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 Conditions, Privacy Policy, and Disclaimers have been updated.
