$NOT Forms Bullish Divergence, Faces Challenges Ahead - BeinCrypto Analytics

The 4-hour NOT/USD chart shows the cryptocurrency hitting an oversold point on July 1. BeInCrypto found this after analyzing the Money Flow Index (MFI), a technical tool that measures time and price to determine trading pressure.

When it increases, it means that there is buying pressure. However, a decrease implies selling pressure. Also,  a reading below 20.000 means an asset is oversold, while one above 80 means it is overbought. 

On the date mentioned above, the MFI was 17.42. However, as of this writing, the indicator’s reading is 63.31, even though NOT’s price dropped by 4.88% in the last 24 hours. A situation like this is called a bullish divergence.

It happens when price changes indicate a new low, but there is a boost in capital flow. When this occurs, it means selling pressure is subsiding while buyers are capitalizing on the lower values to buy at discount prices.

If buyers eventually take over the market, Notcoin’s price may increase as it did between June 11 and 16. Before that period, as shown above, there was a bullish divergence, after which the price went from $0.014 to $0.020 in less than seven days.

While this does not imply that NOT will replicate the same performance, it indicates a notable price increase may be in the works. This could happen within the next five days if validated, and NOT may reach $0.016.