Notcoin (NOT) has been under heavy bearish pressure recently, raising questions among investors about whether this downtrend will continue. The altcoin dipped below its key technical indicators, the 20 and 50 EMA, on the 4-hour timeframe, signaling a potential extended decline.
Bearish Grip Tightens
Several factors are contributing to the bearish sentiment surrounding Notcoin. The decline below the EMAs indicates a shift in momentum towards sellers, who are forcing the price down. This is further corroborated by the falling Open Interest, a metric reflecting declining interest from leveraged traders, and the long/short ratio favoring shorts on Coinglass.
Technical Breakout or False Hope?
Despite the bearish dominance, a glimmer of hope emerges from a technical pattern on the NOT chart – a falling wedge. This pattern often precedes a bullish reversal, suggesting a potential price upswing. However, the recent “death cross” formed by the 20 and 50 EMA casts a shadow over this optimism.
Buyer Intervention Needed for Reversal
For a bullish reversal to take hold, buyers need to step in and defend the crucial $0.0129 support level. A successful defense followed by a price close above the falling wedge pattern could signal a potential uptrend. This uptrend might see NOT retesting the $0.02 resistance level in the coming weeks.
Bears Eyeing Lower Levels
On the other hand, a sustained break below the $0.0129 support could lead to a deeper downtrend. In this scenario, bears might aim to retest the $0.0114 level.
RSI: Confirmation Needed
The Relative Strength Index (RSI) is currently positioned in the bearish zone, indicating a potential reversal from the oversold territory. If the RSI rebounds from its current level, it could add credence to the bullish reversal theory.
Open Interest Decline Favors Bears
The decline in Open Interest alongside the falling price suggests that leveraged traders are losing confidence in Notcoin. This further strengthens the bearish case.
Conclusion
The current market sentiment for Notcoin leans towards the bears. While the falling wedge pattern offers a hint of bullish potential, a confirmed breakout and buyer intervention are necessary for a reversal. Investors should closely monitor price action around the $0.0129 support level and RSI movements for clearer signals.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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