Hold your horses, Notcoin (NOT) bulls! While the recent breakout past the trendline resistance was promising, the formation of a trading range presents a pause for both celebration and panic. This creates opportunities for swing traders, but long-term investors need to exercise caution.
Technical analysis suggests that NOT has been trading within a range bound by $0.0145 and $0.0175 since July 8th. This presents potential entry and exit points for swing traders who can capitalize on price fluctuations within the range. However, investors with a long-term horizon may need to wait for a clearer direction before committing significant capital.
Indicators Hint at Short-Term Weakness
Several indicators raise concerns about a potential short-term price decline for NOT. The RSI, currently hovering near 53, suggests a neutral market sentiment that could easily tip negative if the price falls below $0.156. Additionally, the On-Balance Volume (OBV) remains in a downtrend, indicating weak buying pressure and potentially foreshadowing short-term losses.
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Data Paints a Bearish Picture
The lack of enthusiastic buying is further highlighted by a lukewarm funding rate and tepid Open Interest despite the initial breakout above $0.014 resistance. Perhaps the most concerning sign is the persistent downtrend in the spot CVD, which suggests a potential price drop below $0.014 if the current pattern continues.
While the recent breakout past the trendline offered hope for NOT bulls, the formation of a trading range and bearish technical indicators paint a picture of short-term uncertainty. Swing traders may find opportunities within the range, but long-term investors should wait for a confirmed breakout or breakdown before making significant moves. Remember, this analysis is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.
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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