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Notcoin (NOT) has only begun breathing, and after noting a large rally, the altcoin seems to be stabilizing on the daily chart.
However, with investors looking at this as a bearish development, it would not be surprising to see profit taken with Telegram Coin.
Notcoin Sees Bears
Notcoin’s price has been cooling down since the rally last month, during which many investors made money. But as the bullish cues wane, NOT’s real test begins to see if it survives the profit-taking or loses to skepticism.
Rising bearishness in the short-term timeframe shows signs of a potential downtrend. The Relative Strength Index (RSI) is well below the neutral line into the bearish zone.
The Relative Strength Index (RSI) measures the magnitude of recent price changes to evaluate overbought or oversold conditions in a security. It oscillates between 0 and 100, with readings above 70 typically indicating overbought conditions and readings below 30 indicating oversold conditions.
Since RSI is bearish, the price could also witness a bearish outcome.
Secondly, investors are also opting to withdraw their money from risky assets. The Telegram Coin is noting millions withdrawing from the Open Interest in the Futures market. Open interest refers to the total number of outstanding derivative contracts, such as options or futures, that have not been settled.
It provides insight into the market’s liquidity and the strength of price trends, with rising open interest often indicating increasing market participation.
Over the past three days, over $80 million have been removed from the Open Interest, bringing it down to $209 million.
Read More: What is Notcoin (NOT)? A Guide to the Telegram-Based GameFi Token
This is proof that the skepticism among NOT holders is growing.
NOT Price Prediction: Awaiting Recovery
Given the aforementioned cues, Notcoin’s price is likely to witness a drawdown. The Telegram Coin has already dropped from the high of $0.023 to $0.018 at the time of writing. The altcoin holds above the crucial support of $0.017, but a drop below it is likely.
The consequent decline will potentially send NOT to $0.013. This would nearly wipe out the entirety of the 94% rise noted during the early June rally.
Read More: Notcoin (NOT) Price Prediction 2024/2025/2030
However, if Notcoin’s price prevents a breakdown and bounces back from $0.017, it could recover the recent losses. The likely uptick will send NOT to $0.020, and breaching the resistance of $0.023 will invalidate the bearish thesis.