The buying momentum of Notcoin (NOT), which is linked to Telegram, has recently decreased. This altcoin is currently trading at $0.0076 and has declined by 3% compared to last week.
On-chain and technical indicators suggest that the downward pressure on the token may persist. The reasons are as follows.
Decrease in holdings of whale investors... NOT, forecast to continue declining
Over the past week, large holders, often referred to as 'whales', have reduced their NOT holdings. This has resulted in a 101% decrease in the net outflow of large Notcoin holders during the past week.
Large holders are addresses that hold more than 0.1% of the circulating supply. The large holder net outflow metric tracks the net accumulation or distribution of assets by these holders. A decrease in the large holder net outflow indicates that whale addresses are disposing of their holdings.
This is a bearish signal, suggesting that selling pressure is increasing, and the risk of price decline may grow. Additionally, if retail investors witness large holders offloading massive amounts of assets, their confidence may be undermined, prompting them to sell and accelerating the price decline.
Read more: What is Notcoin (NOT)? A Guide to the Telegram-based GameFi Token
Additionally, over the past month, Notcoin's short-term holders (STHs) — those who have held the token for less than 30 days — have decreased their holding periods. Generally, a decrease in holding periods indicates that investors are selling their assets more quickly than before.
The situation of STHs is particularly concerning. They hold a significant portion of the circulating supply. Therefore, when they shorten their holding periods and sell their coins, they exert substantial downward pressure on the asset's price.
Notcoin Price Prediction: Expecting an All-Time Low
Currently, Notcoin is trading at $0.0076 and is just above the $0.0069 support level. As the selling pressure intensifies, the bulls of NOT may struggle to defend this support line. If they fail to defend it, the next price target for NOT could be the all-time low of $0.0010 last seen on May 16.
Read more: Top 5 Notcoin (NOT) Wallets in 2024
However, if the demand for Notcoin increases again, it could rebound from this support line and start an upward trend towards $0.012, invalidating the bearish outlook mentioned above.
