Notcoin (NOT) is currently navigating a challenging market environment, with bearish pressures intensifying as the altcoin struggles to break free from a persistent downtrend. The token’s price has faced significant resistance, reflecting a broader struggle against declining demand and reduced network activity. Here’s a comprehensive analysis of why Notcoin might be on track to revisit its all-time low.
Since July, Notcoin has been trading below a descending trend line, marking a clear pattern of resistance that the token has yet to overcome. Despite a modest 4% price increase over the past week, this uptick appears to be an attempt to break through this resistance. However, if Notcoin fails to surpass this trend line, it is likely to signal a rejection of the current uptrend and a continuation of the downtrend.
The declining network activity for Notcoin further underscores the bearish outlook. On-chain data reveals a decrease in both daily active and new addresses trading the token. Specifically, daily active addresses have dropped by 17% over the past week, while new addresses created to trade Notcoin have fallen by 16%. This reduction in network activity indicates waning interest and could contribute to continued price weakness.
Additionally, Notcoin’s whale activity has sharply declined. The number of large transactions—those valued between $100,000 and $1 million—has plummeted by 92% over the past 30 days. Furthermore, transactions in the $1 million to $10 million range have decreased by 66% in the same period. This significant drop in large transactions suggests that major holders are reducing their exposure to the token, reflecting a lack of confidence among significant market participants.
Despite a recent 4% rise in price, Notcoin’s bearish bias remains strong. The Elder-Ray Index, which measures the balance of power between bulls and bears in the market, currently stands at -0.00024. This negative reading indicates that bear power is dominant and could be a precursor to further declines.
If Notcoin fails to break above the descending trend line, the token is expected to resume its downtrend. The mounting selling pressure could drive the price down toward its all-time low of $0.0048, a level last seen on May 24. With the current market conditions, revisiting this historical low seems increasingly likely.
In summary, Notcoin (NOT) is facing significant downward pressure, driven by persistent resistance, declining network activity, and reduced whale interest. While recent price movements suggest some attempt at recovery, the overall bearish trend and technical indicators point towards a potential revisit of the all-time low. Investors should be cautious and monitor market developments closely, as further declines may be on the horizon for Notcoin.
September 2024, Cryptoniteuae