Notcoin (NOT) has just started to breathe, and after noticing a large rally, the altcoin seems to be stabilizing on the daily chart.
However, as investors view this as a bearish development, it would not be surprising to see profits made with Telegram Coin.
Notcoin sees the bears
The price of Notcoin has cooled after last month’s rally, during which many investors made money. But as the bullish signals fade, NOT’s real test begins to see whether it survives profit-taking or loses to skepticism.
Increasing short-term downtrend shows signs of a potential downtrend. The Relative Strength Index (RSI) is well below the neutral line in the bearish zone.
The Relative Strength Index (RSI) measures the magnitude of recent price changes to evaluate whether a stock is overbought or oversold. It fluctuates between 0 and 100, with readings above 70 typically indicating overbought conditions and readings below 30 indicating oversold conditions.
Notcoin RSI. Source: TradingView
Since the RSI is bearish, the price could also witness a bearish outcome.
Secondly, investors also choose to withdraw their money from risky assets. Telegram Coin is noticing that millions of people are withdrawing from 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 settled.
It provides insight into market liquidity and the strength of price trends, with rising open interest often indicating growing market participation.
Over the past three days, more than $80 million has been removed from Open Interest, bringing it to $209 million.
Read more: What is Notcoin (NOT)? A guide to the Telegram-based GameFi token
Notcoin open interest. Source: Coinglass
This is evidence that skepticism among NOT holders is growing.
NOT Price Prediction: Waiting for recovery
Given the above-mentioned clues, Notcoin price is likely to witness a decline. At the time of writing, the Telegram coin has already fallen from the high of $0.023 to $0.018. The altcoin is holding above the crucial support of $0.017, but a fall below it is likely.
The resulting decline could potentially send NOT to $0.013. This would all but erase the 94% increase seen during the early June rally.
Read More: Notcoin (NOT) Price Prediction 2024/2025/2030
Notcoin price analysis. Source: TradingView
However, if Notcoin price avoids a crash and recovers from $0.017, it could recover recent losses. Probable upside will NOT send to $0.020 and breaking above $0.023 resistance will invalidate the bearish thesis.
