NOT Consolidates in a Descending Triangle Amid Bullish Rally - What Direction Is It Likely to Trade Next?

Notcoin (NOT) is one of the recently launched crypto tokens and has been on a strong uptrend since it was listed on major exchanges like Binance, OKX, MEXC and KuCoin on May 16th. Despite a dip of 2.46% today as of writing, the token has recorded 82% gain over the last seven days and is now trading at $0.02197.

With a market cap of $2.25 billion, NOT is currently the 51st largest crypto asset according to data from Coinmarketcap. Its 24 hour trading volume has faced a 27% drop and stands at $1.7 billion placing it in the 8th position among the top actively traded digital assets.

The token journey since launch has been on an overall bullish trend. After launching at around $0.009900 on OKX it later dropped to $0.004500 on May 24th. After the low Notcoin embarked on its uptrend surging past the recent high and creating a new high at 0.029431 on June 2nd  according to TradingView data.

Since its record high on June 2nd NOT has been trading within a descending triangle pattern potentially indicating an accumulation zone before the next price surge. A continuation of the bullish trend is anticipated if the price breaks out and closes above the descending triangle,  confirming a continuation of the rally to test the recently created all-time high. However a breakdown could also happen and lead to more drops in price potentially filling the FVG gap marked on the chart and finding its support at it.

The 4 hour Relative Strength Index stands at 54, which is down from an extremely overbought reading where the bulls had driven the 4 hour RSI to 93 on June 2nd. This neutral RSI reading shows the bearish momentum that has been gained in recent days. The technical indicators on the 4 hour chart also show bearish momentum that has materialized from the correction. The Moving Average Convergence Divergence is bearish with the MACD line below the signal line and the histogram also below the zero line.

Looking further at the on-chain metrics, they show a bullish picture for Notcoin but in the long run. This is evident from the growing NOT Futures Open Interest (USD) metric which is currently at $276 million according to data from Coinglass, and is also the highest record since the token launch. Open interest refers to the total number of outstanding NOT futures or options contracts in the market indicating the amount of money invested in NOT derivatives. Therefore this rising open interest signal new buying which is a bullish trend.

Can NOT Reach $1?

Notcoin reaching $1 is quite challenging to predict now because there are no many fundamentals and historical data to relate to, and achieving this milestone will require more than just short term momentum as stated in our previous analysis. Sustained demand, broader adoption of the Telegram game and a favorable market environment will be crucial factors in determining Notcoin long term trajectory.