Amid rising volatility, the price of Notcoin (NOT) has dropped 52% over the past 90 days.. As a result, some market participants are viewing Notcoin’s massive price drop as an opportunity to obtain more tokens at reduced prices.
Despite periodic speculation that Notcoin (NOT) could recover to $0.012, recent on-chain analysis casts doubt on the possibility of such a quick recovery.
Notcoin Loses Liquidity and Faces Headwinds
In June, the token associated with the blockchain The Open Network (TON) rose to an all-time high of $0.028, mainly due to activity in the derivatives market. During this rally, open interest (OI) exceeded $200 million, indicating increased liquidity and significant trading activity.
Open interest measures the total number of open contracts associated with a cryptocurrency, and high OI usually signals increased market liquidity. This allows traders to simplify entry and exit points. However, when OI decreases, it indicates that traders are closing positions, resulting in a less liquid market.
Since then, Notcoin’s open interest has fallen to $67.57 million, according to Santiment. This reduction means the market lacks enough capital to support a 70% price increase, which would push the token back to $0.012.
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NOT is currently trading at $0.0073 and In/Out of Money About Price (IOMAP) data suggests it could face downward pressure.
The IOMAP tool estimates the average price at which tokens were purchased and compares it to the current market price to determine the volume of addresses holding a profit, loss, or break-even. The token currently faces significant resistance at $0.0076 as 87,610 addresses containing a total of 8.41 billion tokens are currently in the red.
This volume exceeds the amount held by profit addresses that purchased between $0.0062 and $0.0073.
NOT price forecast: time to go below $0.0070
On September 14, Notcoin (NOT) briefly rose to $0.0080 before meeting resistance and entering a downtrend. On the 4-hour chart, NOT is facing resistance at both the $0.0073 and $0.0074 levels as these levels have consistently hampered upward movement.
The relative strength index (RSI) fell to 37.54, indicating a bearish outlook as readings below 50 indicate momentum is skewed toward selling pressure.
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If this momentum continues or worsens, NOT could fall below the $0.0071 support level, potentially falling to $0.0066. However, if buyers step in and buy significant volumes, Notcoin could resist downward pressure and return to $0.0080.
