Notcoin (NOT) has shown resilience after facing downward pressure for the past few days. The news of Telegram CEO Pavel Durov’s arrest contributed to the massive decline of Notcoin. In the last 24 hours, the cryptocurrency has declined by 7.38%. This analysis will provide further insight into the next trend of the token to determine whether Notcoin is poised for a bullish breakout or will decline further.
Price Action and Channel Pattern
Over the past week, Notcoin has been trading within a descending channel, as indicated by the blue dashed lines. This channel reflects a broader downtrend, with lower highs and lower lows confirming bearish sentiment. However, the recent price action has brought Notcoin closer to the downward boundary of this channel, suggesting a possible test of support at the $0.005 region.
Related article: As Notcoin Drops 30.76%, Here’s Why Investors Are Losing Confidence
Downward Trend Analysis
The 20 EMA (red line) at 0.00880 has been a consistent barrier for the bulls, as prices have failed to sustain any significant upward movement above this level. The 50 EMA (orange line) at 0.00921 further compounds the bearish outlook, indicating that even medium-term bullish attempts are stifled. The 100 EMA (cyan line) at 0.00972 and 200 EMA (blue line) at 0.01020 solidify this bearish sentiment as key overhead resistances that have kept NOT below these levels for most of the trading session.
Support and Resistance Levels
The nearest support lies around the 0.00800 level. This level has shown signs of holding, but the overall downward momentum suggests that a break below it could trigger further declines. If this level is breached, the next significant support could be around the 0.00750 mark.
On the upside, the 20 EMA and 50 EMA create immediate resistance levels that the bulls must overcome. A breakout above these EMAs could signal the start of a recovery. However, the more formidable challenges lie at the 100 EMA and 200 EMA, which are strong barriers to sustained upward movement.
Further Outlook
The bearish sentiment is expected to dominate in the short term unless the bulls can gather enough strength to break above the key resistance levels. For now, the outlook remains cautious, with the potential for further declines if the support levels fail to hold.
