Mixed on-chain signals for Notcoin: What investors need to know

by
  • Notcoin’s falling wedge breakout pattern and strong RSI and MACD indicators suggest bullish momentum.
  • Mixed on-chain signals and high short interest hint at potential for a short squeeze.

As a seasoned researcher with over two decades of experience in analyzing cryptocurrency markets, I must say that Notcoin [NOT] presents an intriguing scenario right now. The falling wedge breakout pattern coupled with strong RSI and MACD indicators suggest a bullish momentum that is hard to ignore. However, the mixed on-chain signals and high short interest hint at potential for a short squeeze, which could further fuel price action.

It seems that Notcoin is showing signs of a potential breakout from a falling wedge formation, as it has risen by 12.89% over the last 24 hours to currently stand at $0.008007. This pattern often suggests a bullish reversal, sparking speculation about potential future growth.

If the breakout proves successful, it could potentially drive the price back to its initial resistance point of $0.01222, and even beyond to an extended goal of $0.030. This lofty target suggests a potential increase of 251%, raising questions about whether NOT is equipped to leverage this bullish opportunity.

NOT approaching a crucial breakout level

On NOT’s graph, the descending triangle pattern (a type of falling wedge) offers optimism for bullish investors, as this configuration often triggers a shift in trend direction. At present, NOT is approaching a potential breakout, which might push it towards testing the nearby resistance at approximately $0.01222.

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

Consequently, reaching this price level serves as a significant milestone. Not only does it verify a breakthrough, but surpassing it might propel NOT towards its long-term objective of $0.030.

Reaching beyond $0.01222 might stimulate more purchases, potentially driving the price upward as the momentum gains strength.

Bullish signals from RSI and MACD

In simpler terms, the technical analysis supports a positive outlook for NOT. The Relative Strength Index (RSI), at 63.27, suggests that the stock is showing strong momentum but hasn’t yet reached levels that could be considered ‘overbought’.

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

As a crypto investor, I’m optimistic about the market trend right now. It seems like we might still see some upward momentum before encountering pressure that could potentially cause a pullback.

Furthermore, the Moving Average Convergence Divergence (MACD) has displayed a bullish intersection. In this instance, the MACD line has crossed above the signal line, which typically signifies increased buying activity and lends credence to the breakout hypothesis.

NOT on-chain activity shows mixed sentiment

By analyzing blockchain data, we see a mix of positive and negative signals regarding NOT. A slight drop of 0.56% in network growth might indicate a bearish trend, as it seems to suggest a decline in the number of new users joining the platform.

From my analysis perspective, while certain aspects show a downturn, it’s encouraging to note a rise of 1.83% in our “In the Money” metric. This suggests an increase in profitable holders, potentially boosting investor confidence.

Read morePEPE flips Optimism: Can OP emerge from the memecoin mania?

Furthermore, there’s been an 8.56% increase in significant transactions, indicating increased activity from institutional or high-value investors. Although there was a minor decrease (0.11%) in concentration, this trend, along with the other data, suggests a generally optimistic perspective.

Liquidation data hints at possible short squeeze

Looking at the breakdown of liquidation figures, it appears that more traders are taking short positions ($352,910) than long positions ($268,520). This suggests a degree of cautiousness or pessimism in the market, as a higher number of participants seem to be betting against a bullish trend.

However, this setup could also lead to a short squeeze if 

Notcoin manages a breakout, causing those who bet against it to exit their positions, which drives the price up. Binance shows significant long position liquidations worth $149,610, suggesting robust buying activity. Meanwhile, short positions are prevalent on major exchanges, hinting at the possibility of quick price fluctuations.

Read Notcoin’s [NOT] Price Prediction 2024–2025

Given a favorable configuration in its chart, positive technical markers, and generally hopeful on-chain signals (though somewhat divided), Notcoin seems poised for a surge. Overcoming the $0.01222 resistance might initiate a rally, with a feasible trajectory leading to a potential goal of $0.030.

With the current pace and possibilities for a short squeeze, IT is likely to make significant progress towards realizing its lofty goals.

Read More

2024-11-15 04:08