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The much-anticipated arrival of the Telegram-based cryptocurrency, Notcoin (NOT), finally took place on May 16. Despite the excitement surrounding its launch, the initial performance of the token was less than stellar, as the Notcoin price experienced a significant drop in shortly after its debut. Nevertheless, Notcoin managed to secure a position close to the top-100 cryptocurrencies by market cap.
Trading is now live for @thenotcoin $NOT on #Binance ➡️ https://t.co/ezZoRx3sE6 pic.twitter.com/5oT5RbxEFG — Binance (@binance) May 16, 2024
Notcoin was airdropped on May 16, with major crypto exchanges, including Binance, announcing the listing of the token. At the time of its launch, NOT had an initial price of $0.01, giving it a market capitalization of $1 billion. However, the euphoria was short-lived, as the token soon faced a steep correction.
According to data from CoinMarketCap, the Notcoin price plunged by over 52% since its launch.
The Reason Behind the Notcoin Price Drop
Such drastic price declines following airdrops are not uncommon in the crypto world. The primary cause of these drops is often attributed to early investors selling off their tokens to capitalize on initial gains. This phenomenon, driven by the desire to secure quick profits, typically leads to a significant price correction soon after the launch.
Following the launch, Binance announced a significant update regarding Notcoin. Initially, the exchange had planned to list the NOT/BTC trading pair on May 16. However, Binance decided to remove this trading pair to “provide a better trading experience” for its users. This move by Binance reflects its ongoing efforts to ensure optimal trading conditions for all cryptocurrencies listed on its platform.
The initial performance of the Notcoin price may not have met the lofty expectations set prior to its launch. However, the significant trading volume and the continued interest from the crypto community suggest that NOT still holds potential.
Notcoin Price Technical Overview
The latest hourly chart analysis for the Notcoin price reveals significant insights into potential price movements and key levels to watch. The closing prices over the last five hours are showing a gradual decline in value. This consistent downtrend aligns with the technical indicators, painting a predominantly bearish picture.
The 9 EMA (Exponential Moving Average) values and the 20 EMA values both indicate a downward trajectory. The shorter-term 9 EMA being below the longer-term 20 EMA confirms this bearish sentiment. When the price remains below both EMAs, it typically signifies continued downward pressure.
The MACD (Moving Average Convergence Divergence) values further support this bearish outlook. The MACD line is consistently below the signal line with the histograms showing a negative value, albeit slightly decreasing in magnitude. This pattern suggests a potential for continued bearish momentum but with a possibility of decreasing selling pressure. The most recent MACD histogram values show a subtle yet persistent downward momentum.
RSI levels have been moving in the range of 33.76 to 38.82, with the latest value at 33.76. An RSI below 30 generally signals an oversold condition, suggesting that the asset might be undervalued and could see a potential price correction. However, as the RSI is currently above 30, it does not yet indicate an oversold condition, thus maintaining the bearish outlook in the near term.
Levels to Watch
If the Notcoin price can find enough bullish momentum to break through the resistance level at $0.007271, it might signal the beginning of a reversal or at least a short-term upward correction. Traders looking to enter long positions should consider this level as a potential breakout point. Confirmation of sustained movement above this resistance could validate an entry for a long trade, targeting higher resistance levels.
On the downside, the support level at $0.006565 is crucial. A break below this support could accelerate the bearish trend, prompting further declines. Traders considering short positions might look for confirmation of a break below this level to enter trades, targeting further downside potential.
Long Trades:
– Entry Point: Above $0.007271 with confirmation
– Exit Point: Near subsequent resistance levels or as per risk management strategies
– Stop Loss: Slightly below the entry level to manage risk
Short Trades:
– Entry Point: Below 0.006565 with confirmation
– Exit Point: At lower support levels or as per risk management strategies
– Stop Loss: Slightly above the entry level to manage risk
In conclusion, the current technical indicators for NOT suggest a bearish outlook with potential for further declines unless a significant shift in momentum occurs. Traders should closely monitor the key levels of $0.007271 and $0.006565 for potential entry and exit points. As always, proper risk management strategies are essential to navigate the volatile crypto market.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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