Public data shows that the NOT token has risen nearly 40% in the past 24 hours and more than 280% in 7 days.
What factors have driven the surge in NOT? Different analysts have also given answers from the perspectives of token structure, recent catalysts, and secondary market trends.
Staking, Destruction and Secondary Trading
Add a picture caption, no more than 140 characters (optional) Why is there a surge?
Mortgage function
The project party destroys NOT tokens
Market manipulators push prices higher
One of the reasons is the reduction of circulating supply through the staking feature, as well as token burns by ecosystem projects.
About 18 million TON (about $350,000) were destroyed and permanently removed from circulation (reducing selling pressure). While this may not seem like much, investors may expect more destruction in the future. After all, this is cryptocurrency and valuations don’t have to be reasonable.
Another theory heard is that market manipulators are pushing up the price of tokens. NOT Backed by Binance, people often discuss how Binance-backed tokens magically go up.
So, will the rally continue?
It is hard to estimate. Personally, I would stay away from buying this token right now because the risk is too high. There are other tokens in the market with better risk-reward ratio.
On the other hand, more liquidity may flow from TON to NOT as it is now considered a blue-chip ecosystem token.
Bullish arguments for NOT
As you all know, NOT is the token for a popular social clicker game on Telegram, which later added leaderboards and squads features. At its peak, it reached a staggering 35 million users!
Today, NOT is the main token of the Notcoin ecosystem, where you can explore and play mini-games on Telegram.
also:
Listed and supported on Binance
100% of tokens in circulation
Leveraged bets on the TON ecosystem
Bearish NOT Reasons
After a big rally, there is usually a high chance that a token will correct, especially in a hype run like what we saw with NOT.
The likelihood of a correction increases as more investors buy tokens due to fear of missing out (FOMO). These investors usually do not have much confidence and can be easily scared off by overall market corrections.
SummarizeThe increase is large, and adjustments may be made
Ecosystem projects may divert liquidity
NOT is the first “premium” token in the TON ecosystem. By premium, we mean that it has the attention of investors and is supported by the TON ecosystem and Binance.
It is certain that other tokens will follow.
A better strategy might be to research and look for other tokens in the TON ecosystem that could follow NOT’s success.
If you decide to buy the token at the current price, it is recommended to pay special attention to your risk management framework.
Risk management adviceConsider Dollar Cost Averaging
Never invest more than you can afford to lose
Anticipate the feeling of adjustment
Develop additional risk management steps
Buying on the dip, TON BETA narrative and low circulation
In the past few days, the following projects have achieved returns close to 2-4 times:$NOT -> +311%
$BB -> +137.9%
$TNSR -> +74.4%
Here is a way to execute this strategy to achieve large liquidity returns.
Accumulation period
During periods of high volatility, the market moves wildly, which can cause many token prices to drop by 60-70%.
While other traders are complaining about losses, these volatile conditions are actually the best time to watch the market strength and accumulate.
Below is an example of what $NOT accumulated during $BTC’s recent drop to $66k (May 23rd-24th).
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One way to confirm this is to look at the changes in NOT/$BTC. When NOT is no longer highly correlated with BTC’s downtrend, this suggests that accumulation is occurring.
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Catalyst/Speculation
Speculation regarding a potential TON listing has been high over the past few weeks, further driving up the price of NOT, as it is the only spot “beta” token associated with TON.Low market value/no unlocking plan in the near future
While I’ve spoken a lot recently about tokens with low market caps and high fully diluted valuations (FDV), it’s generally known that most market makers have an incentive to create a “soft floor” for tokens and tend to push prices up when liquidity is low, thereby artificially propping up a project’s book value valuation.
For this strategy, you want to look for coins with a market cap below $50 billion.
Example:
NOT 480m
TNSR 99m
BB 128m
Make sure there are no token unlocking plans in the near future, which could drive down the token price. Please be cautious as this is not the safest/risk-free strategy.
It’s a bull market right now, and things are surging. We have the opportunity to share passwords every day.
I still say that, if you don’t know what to do in the bull market, click on my avatar and follow me, I will share the bull market spot planning and contract password for free.
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