Beijing- According to Beijinge, Notcoin [NOT] recently fell below the 20 and 50 moving averages on the 4-hour chart, which was preceded by a strong bearish divergence. The coin turned lower from the resistance of $0.02, with the sellers adding pressure once again, forcing it to drop.
If the buyers re-enter the market and hold the support at $0.129, Notcoin could see a bullish reversal in the short term. At the time of writing, the coin’s trading approached this support level.
Notcoin’s recent reversal formed a falling wedge pattern. After bouncing from the support at $0.004 in May, NOT saw a gradual upward trend. It surged over 470% after rebounding from this support to reach an all-time high of $0.029 on June 2.
During this rebound, Notcoin saw a series of green candles and a sharp uptrend. However, the reversal from the resistance at $0.027 laid the foundation for a month-long decline.
The price trend continued the downward trajectory, falling to test the support range of $0.11-0.12. On the 4-hour chart, the coin broke below the 20 and 50 moving averages, indicating a strong bearish bias.
Meanwhile, the price trend of NOT has formed a classic falling wedge pattern on its chart. It is worth noting that before the falling wedge pattern, there was a steep uptrend, which is often an early sign of a bullish reversal.
However, the recent death cross of the 20/50 EMA may hinder the prospects for a near-term recovery. Buyers should wait for a close above the current falling wedge pattern to gauge the likelihood of an upward trend.
A potential close above the current pattern could help buyers test the $0.02 level in the coming weeks. On the other hand, a sustained close below the $0.129 level may not signal a short-term downtrend.
Here, the target for the bears is to retest the key level of $0.0114.
The Relative Strength Index (RSI) is in bearish territory after breaking below its MA line. Any reversal from this overbought position would help confirm a bias towards a bullish reversal.
Open interest declines
Analysis of open interest for unfilled contracts shows that sellers are in a relatively favorable position. Unfilled contracts for NOT on all exchanges fell by nearly 5% in the past day.
In addition, the long/short ratio on Coinglass for the past 24 hours is approximately 0.88. This indicates that there are slightly more short positions than long positions, reinforcing the bearish bias.