- The digital currency Notcoin (NOT) recently exhibited short-term bullish trends, though sufficient buyer interest remains absent.
- Long-term analysis hints at potential downward pressure on the cryptocurrency’s price trajectory.
- Over the last couple of days, Notcoin managed modest gains while Bitcoin (BTC) endeavored to maintain its position above the $61,000 mark.
Discover the latest developments in Notcoin’s market position and gain insights into its future prospects. Read our detailed analysis now!
Resistance from Trendline Poses Challenges for Notcoin Bulls
The resistance trendline established from highs attained in early June appears to be a significant hurdle. This same trendline, which hindered bullish movements mid-June, is anticipated to oppose upward movements again.
Fibonacci retracement levels derived from the rally in late May indicate that the $0.0171 price mark could act as a resistance level. Following this, a drop towards the $0.0101 support level or the 78.6% retracement is foreseeable.
Though the price indicated a higher low in the short term, hinting at a possible break in bearish sentiment, Notcoin is poised to gather liquidity around the $0.016 to $0.0165 range before potentially turning bearish again.
Futures Market Data Indicates Restricted Bullish Sentiment
An analysis of futures market data reinforces the expectation of bearish trends. The spot CVD metric, despite a minor uptick recently, continues to show a descending trend.
Open Interest has risen slightly, suggesting some speculative bullish interest. However, the lack of substantial spot demand suggests these speculators might face disappointments.
Noteworthy is that although the Funding Rate remains positive, it’s not significantly high. Historically, during the rally from $0.011 to $0.028 in early June, the Funding Rate surged to +0.12, maintaining similar levels for approximately a week. Presently, it’s closer to +0.021, indicating a marginal bullish outlook since June 9th.
Conclusion
In conclusion, while Notcoin shows some short-term bullish potential, the overall outlook remains bearish. The key resistance level at the $0.0171 mark and the trendline resistance may thwart significant upward movements, potentially pushing prices lower. Investors and traders should approach cautiously, keeping in mind the current data from the futures market and ongoing price actions.
