Bears stall Notcoin’s rally: Is $0.0101 next for NOT?
Notcoin's Open Interest shows a spark of light and climbs higher, but bullish speculators might be left disappointed.
- Notcoin possessed short-term bullish potential, but demand was missing.
- The higher timeframe price action showed that another move downward was likely.
Notcoin [NOT] experienced some gains over the past two days, even as Bitcoin [BTC] struggled to stay above the $61k mark.
On the 16th of June, AMBCrypto noted that the social sentiment and price trajectory were bullish in the short term.
The price action since then has reinforced a bearish trend. The past 24 hours saw a short-term shift, but the bears will likely come out on top shortly.
The trendline resistance could rebuff bulls
A trendline resistance (orange) was plotted from the highs made in early June. This trendline served as resistance in mid-June when the token was bullish, and it is likely to serve as resistance once again.
Based on the rally in the second half of May, a set of Fibonacci retracement levels were plotted.
They showed that the $0.0171 level would likely act as resistance, and a move to the $0.0101 or the 78.6% retracement level is likely to occur next.
The white dotted line indicated the price making a new lower timeframe higher high, thus breaking the bearish structure.
However, NOT is still expected to collect the liquidity around the $0.016-$0.0165 region before making a bearish move.
Futures data does not signal bullish conviction yet
The data from the Futures market did not counteract the bearish expectations from the price chart. The spot CVD continued to trend downward, although it saw a slight bounce in the past two days.
The Open Interest showed a spark of like and climbed higher, but without spot demand, bullish speculators waiting for a recovery might be left disappointed.
Is your portfolio green? Check out the NOT Profit Calculator
The Funding Rate was positive, but not extraordinarily so. For example, the rally from $0.011 to $0.028 in early June saw the Funding Rate climb to +0.12, and stay thereabouts for a week.
At press time, the rate was closer to +0.021, with +0.025 being the norm since the 9th of June.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
