Despite hopes that Notcoin (NOT) could regain momentum and hit $0.012, recent data paints a more pessimistic picture for the struggling token. Once considered a potential breakout star on The Open Network (TON) blockchain, NOT is now grappling with low liquidity and significant resistance, making a swift recovery unlikely.
Liquidity Challenges Weigh On Notcoin
In June, Notcoin saw a meteoric rise, hitting an all-time high of $0.028. This surge was fueled by derivatives market activity, and the token’s Open Interest (OI)—the total number of open contracts—soared past $200 million. A high OI typically signals strong liquidity, making it easier for traders to buy and sell. At its peak, NOT attracted a significant amount of trading activity.
However, those golden days are long gone. Notcoin’s OI has plummeted to just $67.57 million, according to data from Santiment. This decline in OI suggests traders are closing their positions, indicating a steep reduction in market liquidity. Without sufficient capital inflows, it is unlikely that the token can stage a 70% price increase to recover to $0.012. The market currently lacks the liquidity to support such a rebound.
IOMAP Shows Downward Pressure
Adding to Notcoin’s woes is the In/Out of Money Around Price (IOMAP) indicator, which reveals mounting resistance in the token’s price movements. IOMAP tracks the volume of addresses holding tokens in profit, at breakeven, or at a loss, based on the average purchase price. Currently, the token faces stiff resistance at the $0.0076 level, where 87,610 addresses hold a total of 8.41 billion tokens at a loss.
This heavy resistance makes upward movement difficult, especially given that the volume of tokens held at a loss outweighs those in profit. According to IOMAP, addresses that purchased NOT between $0.0062 and $0.0073 are still in profit, but they represent a much smaller share of the market.
After briefly climbing to $0.0080 on September 14, Notcoin hit a wall. It quickly reversed course and is now hovering around $0.0073, a level that has consistently acted as resistance. In fact, NOT faces additional resistance at both $0.0073 and $0.0074, with these price points serving as key barriers that have kept the token from gaining any sustained upward momentum.
The Relative Strength Index (RSI), a commonly used technical indicator, underscores the token’s bearish outlook. Currently sitting at 37.54, the RSI suggests that selling pressure is outweighing buying demand, as readings below 50 indicate momentum is tilted toward the bears.
Can NOT Break Free?
While speculation around Notcoin’s potential rebound to $0.012 persists, the numbers tell a different story. The sharp decline in OI, significant resistance levels, and bearish technical indicators all point to continued downward pressure on the token. Unless fresh capital flows into the market, a recovery to $0.012 seems unlikely in the near term.
Also Read: Notcoin At A Crossroads – Will $0.00732 Support Hold Or Will A 23% Drop Loom?
For now, Notcoin holders may need to brace themselves for a prolonged period of price stagnation, unless there is a drastic shift in market conditions. Traders should closely monitor liquidity levels and key resistance points before making any bets on a rebound.
Notcoin’s journey to recovery appears riddled with roadblocks, as reduced liquidity and bearish technical signals cast doubt on its ability to stage a meaningful comeback. While the dream of $0.012 remains alive for some, current market data suggests that this price level may remain out of reach for the foreseeable future.
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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