Analysts have warned that Notcoin may be overbought, which could lead to a price correction in the future. However, the recent community vote of confidence in Notcoin is a positive sign.
The crypto market continues to grapple with bearish sentiment, with Bitcoin struggling to maintain support above $68,000. However, amidst the sea of red, Notcoin (NOT) has emerged as a beacon of hope, defying the broader market trend with a staggering 40% surge in the past 24 hours.
Photo: CoinMarketCap
Notcoin is currently trading at $0.01224, with a market capitalization of $1.26 billion, ranking as the 72nd largest cryptocurrency. Notcoin impressively gained 132% in the last week. The surge in NOT price comes with a 9.40% increase in daily trading volume, settling at $1.18 billion.
Analysts Warn of Overbought Conditions
The recent price surge is good news for Notcoin holders, but analysts advise caution. TradingView data shows the coin’s Relative Strength Index (RSI) at a concerning 68, indicating it’s significantly overbought. This raises worries about potential price manipulation by whales – large investors who can heavily influence the market.
Photo: TradingView
For a sustained and healthy price increase, NOT’s RSI needs to cool down and settle below the 50 mark. An RSI below 50 would suggest more balanced market conditions and would reduce the possibility of a sudden and drastic price correction.
The recent rally follows a rocky launch for NOT. On May 16, the project distributed 80 billion tokens via airdrop, leading to its debut. While getting listed on major exchanges like Binance, Bybit, and MEXC seemed promising, these accessible platforms allowed airdrop recipients to sell off quickly, causing the price to drop 55% shortly after launch.
For over a week following this event, bearish sentiments dominated the market, exerting downward pressure on the price. Consequently, Notcoin price declined to a low of $0.004583 on May 24. However, this seemingly rock-bottom price level eventually served as a springboard for a remarkable recovery.
Community Vote Fuels NOT’s Rise
On May 28, Notcoin experienced a significant surge of 58%, almost retesting the $0.01 mark. This upswing coincided with a community poll where proponents overwhelmingly chose NOT over Bitcoin. This vote of confidence from its user base seems to be a significant factor in the recent price increase.
Whether NOT can sustain its upward trajectory remains to be seen. The overbought RSI and the recent volatility surrounding the launch raise concerns about short-term stability. However, the community backing and the defiance against the broader market downturn are positive signs.
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