Telegram-linked Notecoin (NOT) has been trending below the downtrend resistance line since July 20. Currently trading at $0.0072, the altcoin has lost 40% of its value.
However, the situation is changing in favor as market participants gradually begin to accumulate tokens.
New funds coming into Natcoin
Notecoin’s Chaikin Money Flow (CMF) has been trending upward over the past week. This has occurred despite a 7% price decline over the same period, forming a bullish divergence.
Market participants may view this divergence as a sign of weakening bearish trends and enter the market in anticipation of a price rebound.
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The positive funding rate since September 12th confirms this outlook. NOT's funding rate is currently 0.007%.
A positive funding rate for NOT indicates that market participants are optimistic about future prices and are willing to pay a premium to hold long positions. This indicates bullish sentiment in the market and many traders are taking long positions.
NOT Price Prediction: Will Prices Stop Falling?
The Parabolic Stop and Reverse (SAR) indicator setup of NOT supports the above position. This indicator tracks the trend direction and identifies potential reversal points, and the current points are located below the current price of Natcoin. This position indicates a strong bullish trend.
If the bullish momentum continues, the price of NOT may break the downtrend line and head towards the next resistance level at $0.011. A successful retest of this level could see the token move towards $0.015.
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However, if selling pressure increases, the bullish outlook presented above may be invalidated. The price of Notecoin may fall to $0.0070 and revisit its all-time low of $0.0050.
