Notcoin (NOT), linked to Telegram, has recently experienced a drop in buying activity. Currently, the altcoin is priced at $0.0076, reflecting a 3% decrease over the last week.
Both on-chain and technical metrics indicate that the selling pressure on the token could persist. Here’s why.
Notcoin Set for Further Downtrend
In the last week, major investors, commonly known as whales, have been decreasing their NOT holdings. This trend is evident in the 101% decline in Notcoin’s large holders’ netflow recorded during the week.
Large holders are defined as addresses that possess more than 0.1% of an asset’s circulating supply. The netflow metric for large holders monitors the net accumulation or distribution of an asset by these addresses. A reduction in large holder netflow suggests that whale addresses are divesting their holdings.
This is a bearish indicator that suggests increasing selling pressure, raising the risk of a price decline. Moreover, when retail investors observe substantial sell-offs by large holders, it often diminishes their confidence, leading them to sell and exacerbating the price drop.
Read more: What is Notcoin (NOT)? A Guide to the Telegram-Based GameFi Token
Additionally, in the preceding month, the short-term holders (STHs) of Notcoin—those with tokens held for less than 30 days—have shortened their holding duration. Generally, a decrease in holding time signifies that investors are liquidating their assets more rapidly than before.
The scenario is particularly critical with STHs, as they can represent a substantial portion of the asset’s circulating supply. Therefore, when they reduce their holding periods and sell their tokens, they exert significant downward pressure on the asset’s price.
NOT Price Prediction: All-Time Low Could Be Ahead
Currently, Notcoin is trading at $0.0076, slightly above the support level at $0.0069. With ongoing selloffs, the NOT bulls may find it challenging to uphold this support. If they fail, the next target for NOT might be its all-time low of $0.0010, a mark last reached on May 16.
Read more: 5 Best Notcoin Wallets for 2024
However, should Notcoin experience a revival in demand, it may rebound from this support level and trigger an upward trend toward $0.012, countering the bearish sentiment outlined above.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be viewed as financial or investment advice. BeInCrypto is dedicated to providing accurate and unbiased reporting; however, market conditions can change without prior notice. Always perform your own research and consult with a professional before making any financial commitments. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been recently updated.
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