Altcoins
Notcoin Price Surge – Here’s How It Outperformed Bitcoin, Ethereum
- DID NOT follow TON’s price direction as demand pushed volume to $1.37 billion.
- The token appeared overbought, indicating a possible drop to $0.016 on the charts.
Notcoin [NOT] defied the broader market’s “red period” as the price surged 7.22% in the past 24 hours. According to CoinMarketCap, this happened at a time when Bitcoin [BTC] slipped to $65,103 before rising slightly above $66,000.
Ethereum [ETH] also recorded a decline to $3,381 around the same time. The performance highlights Notcoin’s near-zero correlation with the two major cryptocurrencies.
At press time, NOT changed hands at $0.020. On June 14, however, the token initially reached $0.022 on the price charts.
NO bullish sentiment, go with YOUR
However, Notcoin is not the only one experiencing its rise as a Telegram-related project. Toncoin [TON] also joined us. A few weeks ago, AMBCrypto had reported how NOT did not follow the same trend as TON.
Following the latest price hike, it now appears that the two have aligned.
From an on-chain perspective, we also found that the sentiment around Notcoin was incredibly bullish. Using the Weighted Sentiment metric, for example, AMBCrypto observed that the reading was 0.178 on June 13. However, at press time, the same measurement had reached 0.617.
The notable rise over a short period implies that online comments on NOT were much more positive than those that were bearish on the token.
Source: Santiment
Aside from the price rise and bullish sentiment, Notcoin volume has surpassed the $1 billion mark. The increase in volume constitutes a 131% increase in the last 24 hours.
Trading volume is crucial to the price and direction of a cryptocurrency. It indicates whether market participants are interested in a token.
Heavy movement of the volume, alongside a price increase, suggests an increase in buying pressure. On the other hand, if the spike is accompanied by a drop in prices, this implies an increase in selling pressure.
Notcoin price could drop later
For NO, it was the first. However, NOT volume is unlikely to reach $4 billion like it did when the price hit an all-time high of $0.029 on June 2.
The proof of this is reflected in the Relative Strength Index (RSI). The RSI is an oscillator that measures the speed and direction of price movements.
A value above 70 indicates that an asset is overbought. When it is below 30, it means it is oversold. In the case of Notcoin, the RSI on the daily chart was 74.27.
In simple terms, the token was overbought. Thus, the price could begin a slow reversal on the chart. If this happens, the price of NOT could fall to $0.016 within a few days.
Source: Santiment
However, this prediction would be invalidated if the general market situation changed. Assuming prices across the board start moving north, NOT could follow suit.
Realistic or not, here it is Market capitalization of NOT in BTC terms
If this were the case, the value of the token could rise again to $0.022. Additionally, market participants should be on the lookout for developments or announcements regarding the project as this could also impact the price.