Notcoin’s [NOT] ‘rocky’ launch – How a $1 billion start ended with a major sell-off

TON

As a researcher with experience in the crypto market, I have closely followed the recent developments surrounding Notcoin (NOT) and Toncoin (TON). At press time, NOT had a market cap of just over $681 million, a significant decline from its initial price and market capitalization during its launch on 16 May. Meanwhile, buying pressure on TON hiked on the charts, indicating potential for a price uptick.

The long-awaited arrival of NOT, the highly anticipated crypto project on Telegram, occurred on May 16th. Despite some initial hiccups resulting in a significant price decline, it has managed to stay among the top 100 cryptos in the market. In contrast, TON‘s charts have continued to exhibit bearish tendencies.

All about Notcoin’s launch

As a cryptocurrency analyst, I’d previously reported on AMBCrypto that NOT was scheduled for airdrop on May 16th, with notable exchanges like Binance announcing their intent to list the token. At its inception, the newly listed token commenced trading at a price of $0.01, resulting in a staggering market capitalization of one billion dollars.

Despite the anticipation, the altcoin’s price took an unexpected turn for the worse following its debut. As per CoinMarketCap’s records, NOT experienced a significant decline of more than 53% from its launch price. Currently, NOT is being exchanged at $0.006631 with a market capitalization exceeding $681 million, positioning it as the 108th largest cryptocurrency in the current market.

As a researcher studying cryptocurrency markets, I’ve observed that price declines following airdrops are not an uncommon occurrence. This trend can be attributed mainly to mass sell-offs by investors right after the launch. Instead of keeping their newly acquired tokens, they prefer to cash in on their profits immediately.

Despite the challenges, it’s worth noting that Notcoin has managed to maintain a significant trading volume since its launch. In fact, NOT boasts a trading volume of approximately $1.4 billion, placing it among the top 8 cryptocurrencies in terms of 24-hour trading activity.

While I was observing market developments, Binance announced some significant news for its user base. They revealed their decision to eliminate the NOT/BTC trading pair, which was initially scheduled for listing on May 16th. This action was taken to “enhance the overall trading experience,” as stated by Binance themselves.

TON bears aren’t letting go

Previously, AMBCrypto reported that Notcoin’s blockchain, Toncoin, gained traction due to NOT’s hype. However, the price of Notcoin dipped by more than 3% in the past week, causing it to trade at around $6.63 with a market capitalization surpassing $23 billion at the time of reporting.

Based on Santiment’s data findings, it was observed that investors took advantage of the situation to purchase TON when its price was comparatively lower. This trend emerged as the amount of TON held on exchanges noticeably decreased, while the quantity kept off exchanges grew. Moreover, there was a significant surge in exchange outflows, indicating strong buying demand.

Notcoin’s [NOT] ‘rocky’ launch – How a $1 billion start ended with a major sell-off

Read Toncoin’s [TON] Price Prediction 2024-25

As an analyst, I examined TON‘s daily chart to assess if the increase in purchasing activity would lead to a rise in price.

The token’s Chaikin Money Flow (CMF) registered a decline, hinting at a sustained price drop. Additionally, the Bollinger Bands revealed that TON’s price was still above its 20-day simple moving average (SMA). Hence, TON’s price might first drop to its 20-day SMA support, before gaining bullish momentum.

Notcoin’s [NOT] ‘rocky’ launch – How a $1 billion start ended with a major sell-off

2024-05-17 20:07

All about Notcoin’s launch

TON bears aren’t letting go

Read More