Despite the current bearish pressure on Notcoin’s price, the rising money flow hints at a potential buying opportunity. The decrease in speculative activity along with the current price trend suggests that Notcoin might reverse its direction and start moving up towards $0.016.
However, since it’s trading below the Ichimoku Cloud, any potential breakout could face significant hurdles. Notcoin (NOT), which started as a Telegram-based tap-to-earn coin, previously outperformed major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). However, in the past 30 days, it has struggled to keep up the momentum, with its price dropping to $0.013, reflecting a 27.17% decline over the last month.
Notcoin Shows Bullish Divergence Amid Price Drop
The 4-hour NOT/USD chart reveals that Notcoin hit an oversold level on July 1. The Money Flow Index (MFI), a technical tool used to gauge trading pressure by measuring price and volume changes, indicated this condition. A rising MFI suggests buying pressure, while a falling MFI points to selling pressure. Readings below 20.000 are considered oversold, and those above 80 indicate overbought conditions.
Notcoin 4-Hour Analysis. Source: TradingView
On July 1, the MFI was at 17.42, signaling that Notcoin was oversold. Currently, the MFI stands at 63.31, even though NOT’s price has dropped by 4.88% in the past 24 hours. This situation is known as a bullish divergence. It occurs when price lows are accompanied by increasing capital flow, suggesting that selling pressure is easing and buyers are taking advantage of lower prices.
Historically, a similar bullish divergence was seen between June 11 and 16, when Notcoin’s price surged from $0.014 to $0.020 in under a week. Although this does not guarantee the same outcome, it does hint at the possibility of a significant price increase. If this bullish trend continues, Notcoin could potentially rise to $0.016 within the next five days.
Notcoin’s Open Interest and Ichimoku Cloud Analysis
In the past, Open Interest (OI) has played a crucial role in supporting Notcoin’s uptrend. OI measures the level of speculative activity in the market, with increases indicating higher liquidity in the derivatives market and decreases signaling more closed positions. Currently, Notcoin’s Open Interest stands at $143.08 million, down from $163.60 million six days ago. This decline represents a closure of contracts worth $20 million.
Notcoin Open Interest. Source: Santiment
This reduction in Open Interest suggests a weakening downtrend, which aligns with the bullish signals from the Money Flow Index (MFI). For Notcoin’s price to reverse and reach $0.016, additional inflows into the derivatives market would be necessary.
However, the Ichimoku Cloud, a technical tool used to assess momentum and trend direction, presents a challenge. Since the Ichimoku Cloud is positioned above Notcoin’s current price, it indicates that the cryptocurrency may face resistance as it tries to recover from recent losses. If Notcoin manages to overcome this resistance, its price could potentially rise to $0.016 or even $0.018 in the short term. Conversely, if bearish trends persist and Open Interest continues to decline, the price might fall to $0.011.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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