Notcoin Analysis: Bullish Reversal or Bear Trap? Notcoin Surges 50% Amid Falling Interest Read CoinChapter.com on Google News

NAIROBI (CoinChapter.com) — Notcoin experienced a 50% price rebound yesterday following the Aug. 5 market crash. The recovery came despite a 27% drop in 24-hour trading volume, suggesting potential uncertainty among buyers.

Bitcoin’s rebound from $49,000 has reduced selling pressure on Notcoin, encouraging dip buying across many altcoins. Since late July, Notcoin has seen a bearish trend, with its price dropping 52% from $0.018 to $0.0085.

Technical Indicators Suggest Potential Breakout

In the 4-hour time frame, Notcoin (NOT) has made a notable move. According to @TraderAAG, the price swept the previous month’s low (PML) and has bounced back, breaking above the diagonal trendline.

NOT/USD 4-hour price chart. Source: TraderAAG

Traders would likely wait for a retest of the trendline before entering long positions. The local resistance level stands at the previous week’s high (PWH) of $0.014072. Conversely, the local support level is at the previous week’s low (PWL) of $0.001019, providing a potential safety net for price pullbacks.

Open Interest Plummets as Investor Confidence Wanes

Notcoin’s futures market shows a decrease in open interest, falling to $123.43 million on Aug. 7 from $180 million in late June. Despite the price rising to $0.012, open interest decreased by 37.5%, dropping from $142.15 million to $88.8 million in early Aug.

The decline indicates reduced investor confidence and lower market activity.

Notcoin Open Interest chart. Source: Coinglass

The open interest-weighted funding rate has fluctuated between positive and negative. In early July, it dipped below -0.01%, indicating bearish sentiment. However, by Aug. 7, it rose to 0.0067%, showing cautious optimism among traders.

Notcoin open interest-weighted funding rate.

CryptoQuant Notcoin Holder data reveals diverse strategies. There are 118 addresses holding over 10 million NOTCOIN and 63 with more than 100 million. This distribution suggests a mix of large and small investors, highlighting uncertainty in Notcoin (NOT) market outlook.

However, the open interest-weighted funding rate rose to 0.0067% by Aug. 7, suggesting some optimism among traders. Meanwhile, CryptoQuant data shows a mix of large and small investors in Notcoin, reflecting uncertainty in its outlook.

Bearish Patterns Persist Despite Bullish Hopes

Notcoin price trades at around $0.01178, reflecting a 3.35% increase on Aug. 7. Its market capitalization is around $1.21 billion. The daily chart reveals a descending triangle pattern, suggesting continued bearish pressure on the price.

However, the price is attempting to break above the triangle, indicating a possible shift in momentum. If Notcoin successfully breaches the triangle on the upside, it could signal a bullish reversal.

NOT/USD 1-day price chart. Source: Tradingview

The Fibonacci retracement levels highlight crucial price points. Immediate support lies at the 0.236 level, around $0.0106. If this level breaks, the price might fall toward the lower support at $0.00825. Resistance is seen at the 0.382 Fibonacci level, around $0.013, and further at $0.0144.

Bollinger Bands illustrates increased price volatility, with the asset nearing the lower band at $0.0096, suggesting heightened selling pressure.

The asset remains constrained below the middle band, which corresponds to the 20-day simple moving average at $0.0133. This resistance underscores the prevailing downward momentum.

The Relative Strength Index (RSI) is at 43.31, approaching oversold territory but not yet indicating a reversal. The Bollinger Bands show a contraction, suggesting low volatility but also hinting at a potential breakout.

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