Notcoin ($NOT) Analysis: Bullish Pennant vs Bearish Indicators
Notcoin jumped to a new high of $0.02836, up 300% in two weeks, still holding 82% of gains over the past week.
Trading volume fell 21.17% and open interest fell 4.60%, indicating market caution and lower liquidity.
A bullish pennant suggests a potential continuation of the uptrend; Key resistance is at $0.0223, support is at $0.0210.
Notcoin (NOT) recently experienced a sharp rally, rising over 300% in just two weeks before pulling back. Despite this pullback, NOT is still up 82% over the past week thanks to a quick rally to a new all-time high of $0.02836.
However, Notcoin's price has trended lower over the past 24 hours, raising concerns among investors on whether to sell or hold. Recent declines in trading volume and open interest have raised questions about the future direction of the market. At press time, NOT was up 1.22% to trade at $0.0221 and its market capitalization increased 1.16% to $2,271,366,971.
1-day NOT/USD price chart (source: CoinMarketCap)
Despite the surge in market capitalization, Notcoin trading volume fell 21.17% to $3.71 billion. This sharp decline indicates a drop in trading activity and potentially lower liquidity, suggesting a lack of confidence or interest in the current market direction for NOT.
Notcoin (NOT) derivatives data
Likewise, open interest fell 4.60% to $285.91 million. This decline signifies traders are closing their positions, which is common in anticipation of lower volatility or uncertainty about future price movements. Significant losses on long positions, especially on the 4-hour time frame, highlight the recent price decline, with long positions suffering losses of $505.25K compared to $118.97K on short positions.
Over longer 12-hour and 24-hour periods, losses on long positions significantly outweigh losses on short positions.
NOT Derivatives Data
Specifically, long positions lost $1.15 million and $3.06 million, respectively, while short positions suffered losses of $882.13 thousand and $2.10 million. These data suggest that long-term price trends may be moving against the bulls, potentially indicating bearish sentiment in the market.
Technical analysis of NOT/USD
Notcoin technical analysis highlights a Bullish Pennant pattern, which is often associated with a continuation of an existing uptrend after a short period of consolidation. After a significant increase in the Notcoin price, this pattern formed, the consolidation ended around the $0.022 level. Such patterns are critical to predicting potential bullish moves.
In terms of support and resistance, Notcoin faces immediate resistance at the pennant peak, around $0.0223. A successful break above this resistance could signal a continuation of the bullish trend. Conversely, support is at the lower pennant trendline at approximately $0.0210. A break below this level could indicate a reversal or bearish deviation from the current pattern.
2-hour NOT/USD price chart (source: TradingView)
On the NOTUSD price chart, the Alligator, Jaws, Teeth and Lips indicator shows these intertwined lines indicating the consolidation phase characteristic of the pennant pattern. The MACD, which is currently below the signal line and close to zero, indicates a lack of strong momentum, but could precede a bullish crossover if the price rises.
At the same time, the Aroon indicator confirms this point of view: Aroon Up above 70 indicates a strong bullish presence lately, while Aroon Down below 30 indicates minimal bearish activity. Additionally, the Know Sure Thing (KST) indicator is below zero and trending downward, indicating bearish momentum, although a reversal could signal a change in trend. If this trend continues, traders may need to set a stop loss to prevent further losses.
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