Telegram-linked Notcoin (NOT) has seen a decline in buying momentum recently. The altcoin is now trading at $0.0076, marking a 3% decrease over the past week.
On-chain and technical indicators suggest that the downward pressure on the token may continue. Here is why.
Notcoin Poised To Extend Downtrend
In the past seven days, large holders, often referred to as whales, have been reducing their NOT holdings. This is reflected in the 101% decline in Notcoin’s large holders’ netflow recorded over the past week.
Large holders are addresses holding more than 0.1% of an asset’s circulating supply. The large holders’ netflow metric tracks the net accumulation or distribution of an asset by these holders. A decline in an asset’s large holder netflow indicates that whale addresses are offloading their holdings.
This is a bearish signal that suggests rising selling pressure and an increased risk of a price drop. Moreover, when retail investors notice large holders offloading large quantities of an asset, it often erodes their confidence, prompting them to sell, accelerating the price decline.’
Read more: What is Notcoin (NOT)? A Guide to the Telegram-Based GameFi Token
Notcoin Large Holders Netflow. Source: IntoTheBlockAdditionally, over the past month, Notcoin’s short-term holders (STHs) — those who have held their tokens for less than 30 day — have decreased their holding time. Typically, a decline in holding time indicates that investors are selling the asset more quickly than before.
The situation is particularly precarious with STHs, as they hold a significant portion of the asset’s circulating supply. Consequently, when they shorten their holding periods and sell their coins, they put substantial downward pressure on the asset’s price.
Notcoin Address By Time Held. Source: IntoTheBlockNOT Price Prediction: All-Time Low In View
Notcoin is currently trading at $0.0076, just above the support level of $0.0069. With selloffs gaining momentum, NOT bulls may struggle to defend this support. If they cannot do so, the next price target for NOT could be its all-time low of $0.0010, a level last seen on May 16.
Read more: 5 Top Notcoin Wallets in 2024
Notcoin Price Analysis. Source: TradingViewHowever, if the Notcoin experiences a resurgence in demand, it could bounce off this support line and initiate an uptrend toward $0.012, negating the bearish outlook mentioned above.
