Notcoin (NOT) Surges 40% Amid Market Downturn: Is Caution Warranted?

• Notcoin (NOT) has recently made headlines by surpassing 1.6 million on-chain holders, outpacing popular meme coins such as Shiba Inu, BONK, and Pepe.
• The token’s price has surged to a new all-time high, marking a 150% gain over the past week.
• Despite the impressive rally, technical indicators suggest that Notcoin may be overbought, raising caution among investors.

Notcoin (NOT) achieves a new milestone with 1.6 million on-chain holders and a 150% weekly price surge, but RSI indicators flash caution.

Notcoin (NOT) Price Hits New All-Time High

The Notcoin (NOT) price rally seems to be unstoppable at this stage with the Telegram-based cryptocurrency gaining another 40% in the last 24 hours, hitting a new all-time high of $0.012 with a market cap of $1.218 billion. Also, the daily trading volume for NOT has surged by 18% shooting past $1.2 billion.

Notcoin (NOT) Price Extends Weekly Gains to 150%

Over the last week, the Notcoin (NOT) price has rallied by a staggering 150% adding more than $640 million to its market cap. NOT’s remarkable surge in growth aligns with the rising popularity of Notcoin, a play-to-earn Web3 game hosted on Telegram. This game enables users to convert their in-game currency into NOT tokens, attracting significant interest from Telegram’s expansive user base.

On May 16, 2024, the Notcoin (NOT) token officially debuted, reaching its peak at $0.009900. However, by May 23, 2024, the NOT price underwent a pullback phase, plummeting to around $0.004500, marking a decrease of approximately 54%. Following this pullback phase, the NOT price experienced a significant upsurge, surpassing its previous all-time high of $0.009900. The recent surge of Notcoin has triggered a wave of liquidations with over $5.9 million in short positions liquidated in the last 24 hours.

Just two days ago, NOT entered the top 100 assets list and achieved a market capitalization of $1 billion. However, it has since surged in rankings, now standing as the 81st largest asset with a market capitalization of $1.2 billion. Additionally, the NOT team proudly announced that the token boasts 1.6 million on-chain holders, surpassing popular meme coins like Shiba Inu, BONK, and Pepe in terms of holder count.

Caution Ahead for NOT?

In recent data released by Santiment, the Relative Strength Index (RSI) for NOT, the native token of Notcoin, is presently situated at 83. This indicator suggests that Notcoin is currently overbought, raising concerns about potential price manipulation by large holders, commonly referred to as whales.

To sustain its upward price trajectory, NOT would likely benefit from a cooldown period, with its RSI dropping below the 50 mark. This adjustment could potentially mitigate the risk of excessive speculation and facilitate a more stable market environment for Notcoin.

Conclusion

Notcoin’s recent performance has been nothing short of spectacular, with significant gains in both price and market cap. However, the overbought RSI levels suggest that investors should proceed with caution. A cooldown period could provide a more stable foundation for future growth, ensuring that the token’s value is driven by sustainable factors rather than speculative hype.