The native token of popular Telegram-based tap-to-earn game Notcoin (NOT) has ignited a surge, climbing by a substantial 24.93% in the last 24 hours. This impressive rally comes on the heels of a two-month low of $0.0082, which the token reached on August 5. As the cryptocurrency market watches this development with keen interest, analysts are scrutinizing market data to gauge the sustainability of NOT’s upward trajectory.
A key indicator of market sentiment is the Long/Short Ratio, which compares the number of bullish to bearish traders. A rising ratio suggests growing optimism, while a decline indicates increasing bearishness. In NOT’s case, the Long/Short Ratio has been on the ascent, implying that more traders are betting on the token’s price increase.
To further solidify this bullish outlook, on-chain data from Santiment reveals a surge in Open Interest (OI), a metric representing the total value of outstanding derivatives contracts. A rising OI indicates increased market activity and speculative interest. For NOT, the growing OI suggests that buyers are actively accumulating positions, potentially fueling the price rally.
Historical data provides additional context. During previous price surges, NOT experienced similar spikes in Open Interest. In June, when the token reached an all-time high of $0.028, OI soared above $220 million. This correlation between price and OI highlights the potential for significant price appreciation if the current trend persists.
Also Read: Notcoin Ditches Tap-to-Earn for Story-Driven Game with Lost Dogs NFTs
From a technical perspective, Notcoin’s market structure is showing signs of improvement. The Cumulative Volume Delta (CVD), which measures the net difference between buying and selling volume, has turned positive, indicating a shift in market sentiment from bearish to bullish. Continued buying pressure could propel NOT’s price towards $0.013. However, a resurgence of selling pressure could reverse the gains and push the price back down to $0.0085.
As the cryptocurrency market remains volatile, traders and investors are closely monitoring Notcoin’s performance. The recent rally and positive market indicators have injected optimism into the community, but caution is advised. The sustainability of the upward trend will depend on various factors, including overall market conditions, project developments, and investor sentiment.
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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