CoinDesk reports:
Notcoin has short-term bullish potential but lacks demand. Higher time frame price action suggests a possible further decline.
Despite the difficulty of Bitcoin (BTC) in maintaining above the $6100 mark, Notcoin [NOT] has seen an increase in the past two days.
On June 16, AMBCrypto pointed out that social sentiment and price trajectory are bullish in the short term.
Subsequent price action has reinforced the bearish trend. There has been a short-term turnaround in the past 24 hours, but the bears are likely to take over soon.
Trendline resistance may reject bulls
A trendline resistance (orange) is drawn from the high point in early June, which acted as resistance during the mid-June bullish move and is likely to do so again.
A set of Fibonacci retracement levels is drawn based on the rebound from the second half of May.
They show that the $0.0171 level may act as resistance, with a potential move to the $0.0101 or 78.6% retracement level.
The white dashed line represents price making higher highs in a lower time frame, breaking the bearish structure.
However, before taking bearish action, it is expected that NOT will still gather liquidity in the $0.016 to $0.0165 range.
Futures data do not yet indicate bullish sentiment
Data from the futures market does not counter the bearish expectations on the price chart. Spot CVD continues to decline, despite a slight rebound in the past two days.
Open interest rates show a similar spike and climb, but without spot demand, speculative buyers waiting for a recovery may be disappointed.
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Funding rates are positive but not particularly high. For example, the funding rate rose to +0.12 from $0.011 in early June to $0.028 and remained unchanged for a week.
At the time of writing, this rate is close to +0.021, with +0.025 being the norm since June 9.
Disclaimer: The information provided is not financial, investment, trading, or any other type of advice, and is solely the opinion of the author.
