Why is the price of Notcoin decreasing despite many active addresses?
Notcoin has seen a lot of interest in the past week. However, the value fell by double digits during the same period.
Key indicators reviewed on the one-day chart suggest a continuation of price declines.
Notcoin: Increase in demand does not equal increase in value
Since the arrest of Telegram CEO Pavel Durov in 2011, As of August 24, Telegram-related values such as NOT have been dropped. Trading at $0.0076 as of this writing, NOT is down 23 percent.
At current prices, it's not at a trading low seen in late May, which creates a buying opportunity for those looking to trade with the market. This dip has led to a surge in demand over the past week.
According to IntoTheBlock, the altcoin has seen a 13% increase in daily active addresses over the past seven days. Additionally, new demand for NOT increased, with a 46% increase in the daily count of new addresses trading the token during this period.
Read more: Top 5 Notcoin Wallets in 2024
However, in addition to traders buying the NOT's dip, there is another explanation for the revival in addresses where the price has dipped.
Existing note holders may be distributing their tokens to new users to prevent further losses on their investments. This includes regularly activated and new contacts. As these early adopters or whales cash out, the value of the token will continue to decline.
The declining flow of a large network of holders for the token suggests that his whales have been shrinking since Durov's arrest. Last week, this network's flow dropped by more than 90%, confirming the gradual exit of the main owners. This is a hidden signal that could prompt retail investors to sell their tokens.
Not a price forecast: Is a rebound on the horizon?
At press time, NOT's Relative Strength Index (RSI) stands at 32, indicating that it is approaching the oversold 30 zone, where a price reversal is expected. If the exhaustion of sellers begins, the token may reverse its course and start a growth, which may reach $0.013.
However, this depends on the new liquid entering the market. The token's Chaikin Money Flow (CMF) currently shows increasing liquidity, with a value of -0.20, indicating further downside risk.
Read more: Where to buy Notcoin: Top 5 platforms in 2024
If NOT traders continue to withdraw capital from the market, the token may revisit the all-time low of $0.00004.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
