Notcoin surges 50 facing waning popularity and capital flight

CoinWorld reported:
Waking up to find that it hasn’t broken even, it’s time to withdraw.


Let’s take a look at NOT’s performance from the beginning of July until now: On July 4th, the price of NOT was still hovering around $0.011 when the market opened. However, within just 24 hours, the price of NOT plummeted by 18.38% to $0.0098. This is the lowest price since its launch, even lower than the selling low point in its first week.
What caused this sharp decline?
The price drop is not accidental, and one of the important factors is the trend of Bitcoin (BTC). In the past few days, the bankrupt Bitcoin exchange Mt. Gox announced its plan to distribute BTC to its creditors. On July 4th, Mt. Gox began transferring billions of dollars worth of Bitcoin from its cold wallets for creditor payments.


This move caused market panic, and many investors chose to sell off some of their cryptocurrency assets, including NOT. The drop in NOT’s price contrasted sharply with the buzz it had generated in the Telegram community earlier.
Price fluctuations are not only reflected in the spot market, but also in the derivatives market. One of the key indicators that maintained the high price was the total open interest of contracts. As of the time of writing, the price fluctuations were not only seen in the spot market, but also in the derivatives market, where it played a significant role.
The total open interest represents the value of unclosed contracts in the market. An increase in this value means that traders are injecting more liquidity into the market, while a decrease means that traders are closing positions and withdrawing funds. If this trend continues, it will be difficult to maintain market balance.
Declining social media buzz adds insult to injury
Another factor that led to the decline in NOT’s price was the decline in social media buzz. The volume of discussions on social media can reflect the attention given to cryptocurrencies, and an increase in discussion volume usually drives up prices. However, at the time of writing, the social media buzz around NOT had dropped to extremely low levels.
The weakening demand was unable to offset the selling pressure, ultimately leading to a continuous decline in price.
Technical indicators support this
The NOT token has been trading within a descending wedge pattern, struggling to find a way out of a narrow gorge. Recently, it faced profit-taking pressure, as if a gust of wind mercilessly blew away ripe fruit. This week, NOT retested its crucial support area at $0.01000, which is a crucial checkpoint determining its future fate. Fortunately, since then, the market has seen a rebound, and investors have cleverly utilized the NOT token in an attempt to maintain hard-earned profits.
However, at the same time, the NOT token has encountered some setbacks. It has fallen below the 20-day EMA, an important technical indicator, which undoubtedly cast a shadow over investors’ confidence. In the past few trading days, sellers have had the upper hand, and the market balance seems to be tilting in an unfavorable direction for NOT.
Looking back to June 2024, the NOT token had a glorious time, with strong momentum and a bullish trend. However, after reaching its peak at $0.0291 on June 2nd, it started a tired retreat, like an athlete crossing the finish line. As of the time of writing, NOT is trading at $0.0102, with an intraday decline of over 5.30%. Its market capitalization is $1.05 billion, ranking 69th. Although the current situation is not optimistic, for those investors with a long-term perspective, perhaps this is an excellent opportunity to buy at a low price and wait for a future rebound.