Investors Advised to Monitor Notcoin for Potential Trend Reversal
Notcoin [NOT] saw a prolonged downtrend following its peak of $0.032 on 2nd June, facing continuous selling pressure amidst a bearish market sentiment.
The token’s value dropped below both the 20-day and 50-day exponential moving averages (EMAs), and it currently sits at $0.00716, marking an approximate 8% decrease in the last 24 hours. Maintaining the $0.007 support level is critical for buyers to avert further declines.
Could a descending wedge pattern signal a potential turnaround?
Notcoin now rests at a crucial support level around $0.0072, aligned with the lower boundary of a descending wedge, essential for bullish investors to uphold to initiate a short-term reversal.
Descending wedges traditionally signify bullish reversals, but purchasers must act promptly to trigger a response.
If Notcoin manages to close above the 20-day EMA at $0.0081 in the near future, it could pave the way for a potential recovery. In such a scenario, reaching the $0.0095 resistance level and possibly revisiting $0.01 could be on the cards.
Conversely, breaching the $0.0072 support could lead to further downturns toward the $0.005 mark before a substantial reversal materializes.
With the Relative Strength Index (RSI) hovering around 34.5, suggesting oversold conditions, a bounce from this threshold might reinforce a bullish divergence. However, a failure to rebound could endorse further downward movement.
Insights from Derivatives Data
Derivatives data unveiled that Notcoin’s open interest (OI) declined by almost 6.92% recently, showcasing diminishing market interest. The long/short ratio skewed towards shorts at 0.9102, indicating prevalent bearish sentiments among traders. Yet, Binance’s long/short ratio stood at 3.6992, hinting that while short-term traders leaned towards shorts, the broader market sentiment wasn’t overwhelmingly pessimistic, leaving room for potential recovery.
Despite enduring bearish pressures, Notcoin’s formation of a descending wedge pattern and oversold RSI levels might create an opportunity for a bullish turnaround.
A breakthrough near the $0.0081 resistance could spark renewed buyer interest and drive prices towards the $0.0095 threshold. In contrast, failing to defend the $0.0072 support might prompt a further correction, potentially dragging prices down to the $0.005 range before a significant recovery is attempted.