The price of Telegram’s Notcoin (NOT) dropped 20% in the past 30 days, leaving 71% of holders “out of the money.” However, an on-chain analysis suggests that this downtrend might soon stabilize, potentially offering a reprieve for holders.
Selling Pressure on Notcoin Eases
One key factor behind Notcoin’s recent decline was increased selling pressure. But data from IntoTheBlock reveals a recent shift, with selling pressure now easing. This trend is backed by the Coin Holding Time metric, which reflects how long investors hold a cryptocurrency without transacting it.
Higher holding times often indicate an approaching uptrend, while lower holding times signal price drops. Over the past seven days, Notcoin’s holding time has increased by 30%, suggesting that the coin may avoid further sharp corrections if this trend holds.
Money Flow Index Signals Buying Activity
Another indicator of potential recovery is the Money Flow Index (MFI). This metric assesses buying and selling pressures based on price and volume. A rising MFI signals increasing buyer interest, which could drive prices up, while a decline points to heightened selling pressure. Recently, Notcoin’s MFI has shown a gradual increase, indicating that buyers are entering the market. If the MFI trend persists, it could reinforce Notcoin’s recovery potential.
Falling Wedge Pattern Suggests Bullish Possibility
On the technical analysis front, Notcoin has formed a falling wedge pattern, a classic bullish reversal setup. This pattern typically forms as prices decline but within converging trendlines, signaling a possible breakout when the asset moves above the wedge.
Currently priced at $0.0068, Notcoin is nearing its resistance level of $0.0077. If it manages to break above this point with strong volume, analysts predict a potential 70% rally, pushing the price to around $0.012. However, if it faces rejection, the price could dip to support at $0.0062.
Overall, the easing selling pressure and bullish indicators provide cautious optimism for Notcoin holders.
