Recent Decline of Notcoin
Notcoin (NOT) has been facing a renewed downtrend, mirroring the behavior of other tokens associated with Telegram following recent events involving Pavel Durov’s detention. The arrest of Pavel Durov, Telegram’s founder, has significantly impacted the market value of Notcoin, a prominent token within the Telegram ecosystem.
Market Reactions and Pressures
Launched in January as a Web3 gaming project on the TON network, Notcoin quickly gained popularity as a mini-application within Telegram. By May, NOT was listed on several major exchanges. However, recent news about Durov’s arrest has led to a noticeable drop in NOT’s price, unsettling the market and diminishing the coin’s upward momentum. The Relative Strength Index (RSI), which was approaching the neutral line, has nearly dropped to the oversold level, indicating a rapid decrease in buying pressure.
RSI Chart
Source: TradingView
These developments have resulted in a significant decrease in Notcoin’s adoption rate, reaching its lowest point in nearly two months. This metric, which tracks the contribution of new addresses to the overall number of active addresses on the network, is now at 15.31%. This is the lowest it has been since early July, highlighting increased uncertainty among investors, particularly newer ones who have been rattled by recent events.
Notcoin Adoption Rate Chart
Source: IntoTheBlock
Predicted Continuation of the Downtrend
Notcoin’s price has struggled to break out of a nearly three-month downtrend, failing to do so on four occasions. On two occasions, NOT managed to close above the trendline but could not sustain the growth. Currently, the altcoin has lost support at $0.0094 and is nearing $0.0076 after a fall of over 27% in the past three days. There remains a possibility that the price might rebound from this level and re-establish $0.0094 as support. Despite bearish indicators, NOT may still attract buyers looking to capitalize on low prices.
NOT Price Analysis Chart
Source: TradingView
However, if the overall decline continues, Notcoin might drop below $0.0076, approaching its historical low of $0.0045. Testing this level would invalidate any bullish outlook.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.
My name is Jay Skrantz, and I’ve been a freelance writer for 10 years, concentrating largely on investment brokerage, mutual fund investing, and financial analysis topics. As a reporter, I’ve written extensively for a wide variety of sites and publications like SeekingAlpha, MoneyShow, and MotleyFool. I’ve also done substantial freelance work for a number of financial publications, including MarketWatch, CIO Magazine, and TheStreet.
