Despite remaining under bearish pressure, Notcoin (NOT) has exhibited a promising rise in money flow, signaling a potential buying opportunity for investors. The decline in speculative activity alongside the price trend suggests that NOT could reverse its current trajectory and begin an upswing toward $0.016.
Current Market Performance
Notcoin, the Telegram-based tap-to-earn coin, has recently faced significant hurdles. While it had previously outperformed major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), the last 30 days have been challenging. Currently trading at $0.013, NOT has seen a 27.17% decrease over the past month.
Bullish Indicators Emerging
Analyzing the 4-hour NOT/USD chart reveals that the cryptocurrency reached an oversold point on July 1, according to the Money Flow Index (MFI). This technical tool measures trading pressure by analyzing time and price. A reading below 20.000 indicates an asset is oversold, while one above 80 suggests it is overbought. On July 1, the MFI for NOT was 17.42. As of now, it has increased to 63.31, despite a 4.88% price drop in the last 24 hours.
This scenario is known as a bullish divergence, where price changes indicate a new low, but capital flow increases. This suggests that selling pressure is easing, and buyers are taking advantage of lower prices. If buyers continue to dominate, Notcoin’s price could see a significant uptick, similar to the increase from $0.014 to $0.020 between June 11 and 16, following a previous bullish divergence. Although this doesn’t guarantee a repeat performance, it indicates a potential price increase to $0.016 within the next five days if the trend holds.
Speculative Activity and Price Predictions
Open Interest (OI), a measure of speculative activity in the market, has also been a crucial factor for Notcoin. An increase in OI indicates rising liquidity in derivatives contracts, while a decrease suggests more closed positions. Currently, Notcoin’s OI stands at $143.08 million, down from $163.60 million six days ago, indicating that $20 million worth of contracts have been closed.
This decrease in OI aligns with the MFI indications, suggesting that the downtrend is weakening. For Notcoin to reverse its course and move toward $0.016, increased investment in the derivatives market is essential.
Challenges Ahead
Despite the bullish signals, Notcoin faces resistance as indicated by the Ichimoku Cloud, a technical tool that measures momentum and trend direction. Currently, the cloud is above NOT’s price, signaling a downtrend. For Notcoin to break this resistance and trade higher, it must overcome this technical hurdle.
In conclusion, while Notcoin shows promising signs of a bullish divergence and potential for price increase, it must navigate significant challenges to realize this potential. Investors should monitor these indicators closely to make informed decisions.
