Telegram-based Notcoin (NOT) is poised for significant growth, with its market capitalization expected to double in the coming weeks. This optimistic outlook is supported by strong technical indicators and fundamentals, namely the ecosystem’s recent token burn.
Notcoin burns 210 million NOT per day.
On June 25, the Notcoin team announced that it had burned 210 million NOT tokens worth $3 million in one day. This caught the attention of traders and helped the price of NOT rise by up to 16.40%, reaching $0.0164.
The Notcoin team revealed plans to distribute $4.2 million worth of NOT tokens to “gold and platinum users” of the Explore initiative. This initiative allows any project to create a campaign with tasks for users that contribute NOTs to the navigation pool and earn NOTs upon completion.
Both updates point to two fundamentally bullish scenarios. For example, a token burn permanently removes a portion of the coin supply from active circulation, which is theoretically a bullish strategy if demand for the coin increases at the same time.
Likewise, users earning NOT for completing tasks ensures ongoing demand for tokens as new projects and users join the platform. Both features are central to Notcoin founder Sasha Plotvinov’s four-year roadmap for the project.
Related: Cryptocurrency Clicker Games Need Real-World Token Use Cases to Be Sustainable
The Notcoin project is currently focused on the Notcoin app, which offers campaigns where users can earn Notcoins by participating in new Telegram games. The goal is to establish the app as a central hub for launching other ecosystem projects, driving demand for Notcoin, and integrating token burns.
Notcoin Technical Analysis: 100% Price Rise Potential
Price chart techniques suggest that NOT’s continued price rally is part of a broader bounce after the token tested the lower trendline of its usual descending wedge pattern.
A falling wedge is considered a bullish reversal pattern characterized by two converging downward trend lines. It usually resolves after the price breaks the upper trend line and rises by the maximum distance between the upper and lower trend lines.
Applying the same technical principles to NOT’s bullish scenario, the upside target for July is $0.023 to $0.031, an increase of 45% to 100% from current price levels, depending on the breakout point.
Conversely, a bearish scenario is that a break below the lower trendline of the wedge risks completely invalidating the bullish reversal setup and could push NOT’s price down to the May 31-June 1 support level of $0.011.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.