Key Takeaways
Notcoin tested key support after 5% drop, with rising volume and looming liquidations hinting at a major breakout or deeper downside.
Telegram mini-game coin, Notcoin [NOT is now testing a key confluence area formed by a horizontal level and ascending trendline.
Historically, such zones hint at potential reversals, and current price action reflects that possibility.
Momentum weakens, but trading volume spikes
However, with the recent dip, NOT has formed three consecutive red candles.
At press time, the Telegram-based crypto hovered around $0.0020, down 5.2% from the previous day.
Interestingly, this dip hasn’t scared investors away.
According to CoinMarketCap, Notcoin crypto saw its 24-hour trading volume jump 17%, suggesting growing interest despite falling prices.
NOT crypto outflows rise, sentiment splits
Despite the continued price decline, CoinGlass data reflects mixed sentiment.
NOT recorded a $278K outflow as of the 5th of August, a sign that tokens are moving off exchanges, often interpreted as accumulation.
This could reduce immediate sell pressure and support price stability.
Source: CoinGlass
Meanwhile, amid the ongoing market uncertainty, traders appear to be strongly betting on short positions.
According to on-chain data, over the past week, traders have been heavily focused on the $0.00193 level on the lower side and $0.00206 on the upper side.
Source: CoinGlass
These levels are not only major liquidation zones but also areas where traders are significantly over-leveraged.
If the current market sentiment persists and NOT’s price falls to the $0.00193 level, nearly $494.5K worth of long positions will be liquidated.
Conversely, if sentiment shifts and the price rises to $0.00206, approximately $1.17 million worth of short positions will be liquidated.
This asymmetry hints that sellers are still holding the reins for now.
Notcoin chart signals tighten ahead of potential breakout
Technically, NOT appears to be in a consolidation phase within a symmetrical triangle pattern. The narrowing range increases the chance of a breakout.
Source: TradingView
If NOT can close a daily candle above $0.0022, bulls may push toward the upper target of $0.00247. However, a breakdown below the trendline could trigger a 13% dip toward the $0.0016 zone.
As of press time, the Supertrend indicator was green and positioned below price, signaling ongoing bullish momentum, though that could shift quickly if support breaks.
