Wake up, not get your money back, withdraw
Now let's take a look at NOT's performance since the beginning of July: On July 4, NOT's price was still around $0.011 when it opened in the early morning. However, in just 24 hours, NOT's price plummeted by 18.38% to $0.0098. This is the lowest price since its launch, even lower than the selling low in its first week of launch.
So what caused this crash?
The price drop is not accidental, and one of the important factors is the trend of Bitcoin (BTC). In the past few days, the defunct Bitcoin exchange Mt. Gox plans to distribute BTC to its creditors. On July 4, Mt. Gox began to transfer billions of dollars of Bitcoin from cold wallets to pay creditors.
This move caused panic in the market, and many investors chose to sell some of their cryptocurrency assets, including NOT. The decline in NOT's price was in stark contrast to the popularity it had accumulated through the Telegram community in the early stage.
Price fluctuations are not only reflected in the spot market, but also in the derivatives market. One of the key indicators for maintaining high prices is the total amount of open interest. As of press time, the price fluctuations are not only reflected in the spot market, but also in the derivatives market.
The total open interest represents the value of open contracts in the market. An increase in the value means that traders are injecting more liquidity into the market, while a decrease in the value means that traders are closing their positions and leaving the market, and funds are flowing out. If this trend continues, it will be difficult to maintain a balanced market.
The decline of social media enthusiasm has made things worse
Another factor that contributed to the price drop of NOT is the fading of social media popularity. Social media discussion volume can reflect the attention of cryptocurrencies, and usually an increase in discussion volume will drive price increases. However, as of press time, the social media discussion volume of NOT has dropped to an extremely low level.
Weaker demand was unable to offset the selling pressure, ultimately leading to a sustained decline in prices.
Technical indicators support
NOT token has been struggling to trade within a falling wedge pattern, as if trying to find a way out of a narrow canyon. Recently, it has faced profit-taking pressure, like a gust of wind that mercilessly blows away overripe fruits. This week, NOT retested its key support area of $0.01000, a crucial level that will determine its future fate. Fortunately, since then, the market has corrected and NOT tokens have been skillfully used by investors trying to hold on to their hard-earned gains.
But at the same time, the NOT token has also suffered some setbacks. It has fallen below the 20-day EMA, an important technical indicator, which undoubtedly casts a shadow on investors' confidence. In the past few trading days, sellers have the upper hand, and the market balance seems to be tilted in a direction unfavorable to NOT.
Looking back to June 2024, the NOT token had a glorious time, with strong momentum and bullish all the way. However, after reaching a high of $0.0291 on June 2, it began a tired retracement like an athlete crossing the finish line. As of press time, NOT is trading at $0.0102, with an intraday decline of more than 5.30%. Its market capitalization is $1.05 billion, ranking 69th. Although the current situation is not optimistic, for those investors with a long-term vision, perhaps this is a great opportunity to buy low and wait for a rebound in the future.
That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.
