The cryptocurrency market has been rattled by the recent arrest of Telegram’s CEO, Pavel Durov, on August 24. Among the hardest hit is Notcoin (NOT), a lesser-known altcoin that has seen its value plummet by 20% since the news broke. At press time, NOT is trading at a meager $0.0088, teetering on the brink of its all-time low.
Notcoin Struggles As Trading Activity Declines
The fallout from Durov’s arrest has sparked widespread panic among Notcoin holders. In the past seven days, the number of active addresses trading NOT has sharply declined, with on-chain data from IntoTheBlock revealing a 76% drop in unique addresses completing at least one transaction. This downturn reflects a broader trend of waning interest in the altcoin, as traders increasingly shy away from the embattled asset.
Additionally, the creation of new addresses for trading NOT has plummeted by 77% over the same period. This steep decline in activity is a clear signal of eroding market sentiment. When fewer people are engaging with a cryptocurrency, it typically points to a lack of confidence in its future prospects.
Whales Accumulate Despite Market Turmoil
Despite the grim outlook, some savvy investors see opportunity amid the chaos. Notcoin’s large holders—often referred to as whales—have been quietly accumulating the token, even as its value continues to drop. Over the past week, the netflow of large holders has surged by an impressive 312%, reaching a three-month high of 15.33 billion NOT on August 24.
This surge in accumulation suggests that whales are betting on a potential rebound, buying up NOT at a discount in hopes of future gains. Large holders, who control over 0.1% of an asset’s circulating supply, can significantly influence the market, and their recent activity hints at a possible shift in the altcoin’s fortunes.
What’s Next for Notcoin?
While some are optimistic about Notcoin’s long-term potential, the technical indicators paint a bleaker picture. The Chaikin Money Flow (CMF), a key metric that tracks money flow into and out of an asset, has hit a 30-day low of -0.22, signaling that liquidity is rapidly exiting the market. This is often a precursor to further price declines.
Furthermore, the Relative Strength Index (RSI), which measures the momentum of price movements, currently sits at 35.50, well below the neutral 50 mark. This indicates that selling pressure is outpacing buying activity, reinforcing the bearish outlook.
Also Read: Bitcoin Breaks $65K Barrier – What’s Next For Toncoin At $5 and Notcoin’s $0.00957 Support?
If the sell-offs continue, Notcoin could be headed for uncharted territory, potentially dipping below its all-time low of $0.0046. A worst-case scenario might see the altcoin’s value tumble further to around $0.00031. However, if market sentiment shifts and demand for NOT increases, the price could rally toward $0.013.
Notcoin’s future hangs in the balance as it grapples with the fallout from Pavel Durov’s arrest. While the altcoin’s recent performance has been dismal, the increased accumulation by whales suggests that some investors are holding out hope for a recovery. As the market continues to digest the implications of Durov’s legal troubles, all eyes will be on NOT to see whether it can weather the storm or succumb to further declines.
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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