Telegram-related Notcoin (NOT) has recently seen a slowdown in purchase rates. The altcoin is currently trading at $0.0076, down 3% over the past week.
On-chain and technical indicators suggest that downward pressure on the token may continue. Here’s why.
Notcoin is ready to extend the downtrend
Over the past seven days, large holders, often referred to as whales, have been reducing their NON-assets. This is reflected in the 101% decline in net inflows from large Notcoin holders recorded over the past week.
Large holders are addresses that hold more than 0.1% of the circulating supply of an asset. The net flows of large holders track the net accumulation or distribution of assets by these holders. The decline in the net flow of large asset holders indicates that whale addresses are offloading their assets.
This is a bearish signal that suggests increased selling pressure and increased risk of falling prices. Moreover, when retail investors notice large holders selling large amounts of assets, it often undermines their confidence, prompting them to sell, accelerating price declines.”
Additionally, over the past month, short-term Notcoin (STH) holders—those who have held their tokens for less than 30 days—have reduced their holding time. Typically, a decrease in holding time indicates that investors are selling the asset faster than before.
The situation is especially dangerous with STHs since they hold a significant portion of the circulating supply of assets. Consequently, when they shorten their holding periods and sell their coins, they put significant downward pressure on the price of the asset.
NOT price forecast: record low
Notcoin is currently trading at $0.0076, just above the $0.0069 support level. As the sell-off gains momentum, it may be difficult for NOT bulls to defend this support. If they fail to do so, the next target price for NOT could be the all-time low of $0.0010, a level last seen on May 16th.
However, if demand for Notcoin resumes, it could bounce off this support line and begin an uptrend towards $0.012, negating the bearish outlook mentioned above.
