Notcoin [NOT] has been witnessing signs of fatigue in the market, witnessing a 31% decline in its price over the past month. Both technical indicators and on-chain data are pointing towards a weakening momentum, suggesting that the downward trend in price might persist.
Weakening of Price Momentum
According to TradingView’s NOT/USD 4-hour chart, the Relative Strength Index (RSI) has been on a downward trajectory since reaching its peak near the overbought territory on September 9.
The decreasing RSI over the 4-hour period implies that there has been selling pressure impacting the pair, potentially indicating further price drops.
It is significant to note that only 23% of Notcoin addresses are currently seeing profits at the existing price levels, while a considerable 65.50% are facing losses, as per data from IntoTheBlock.
NOT is encountering significant resistance at $0.0083, where 171,780 addresses holding a total of 3.59 billion tokens are underwater.
Diminishing Network Activity
Adding to the bearish sentiment, on-chain metrics point towards a noticeable decrease in Notcoin’s network activity, indicating a decline in the enthusiasm surrounding the tap-to-earn game.
New addresses on the network have diminished by 41.9% in the past 7 days, while active addresses have plunged by 49.2% during the same period.
Reflecting this trend, the active address ratio has been dwindling throughout September, suggesting reduced user participation.
Notcoin observed a 30-day low in the active addresses ratio, standing at 1.13% on September 17, dropping from the 30-day high of 3.76% recorded on September 5.
Transaction volumes have also suffered a blow, with the number of transactions on the network consistently remaining below 50,000 since September 13, hitting a 7-day low of 41.23K on September 17.
Moreover, the count of daily large transactions has been on a downward trend this month, reaching a 7-day low of only 3 transactions on September 16. This decline indicates reduced activity among significant holders, hinting at a pullback.
Future Prospects for NOT/USDT
As of now, NOT was trading slightly above the $0.0070 support level, with the next cushion lying around $0.0044. Analyzing the 1-D NOT/USDT chart shows a pattern of a falling wedge since June, consistently testing new lower resistance levels.
Given the prevailing lack of buying interest in the market, a drop below the current support could lead to further losses.
Zooming in on the 4-hour chart, NOT/USDT has been consolidating between $0.007 and $0.0084 since the start of September.
The pair reached $0.0076 on September 17 before facing rejection and reverting course, aligning with its recent price movements under a descending resistance line.
It’s worth highlighting that Notcoin (NOT) has been exhibiting an increased correlation with both Bitcoin (BTC) and Ethereum (ETH) throughout the month, particularly with the latter.
According to IntoTheBlock data, the 30-day correlation between NOT and ETH presently stands at 0.81, nearing its peak value of 0.85 recognized on August 20.
This rising correlation suggests that NOT’s price movements are progressively intertwining with those of the leading altcoin.