- Notcoin had short-term bullish potential, but demand was lacking.
- Price action on a higher period showed that another downtrend was likely.
Notcoin (NOT) has experienced some gains over the past two days, even as Bitcoin (BTC) has struggled to stay above $61,000.
On June 16, AMBCrypto noted that social sentiment and price trajectory remain optimistic in the near term.
The subsequent price action strengthened the bearish trend. There have been some short-term changes in the last 24 hours, but the downtrend is likely to top out soon.
Trendline Resistance Can Reject Bullishness
Source: NOT/USDT on TradingView
Trendline resistance (orange) is marked based on the early June highs. This trend line served as resistance in mid-June when the token was strong, and is likely to act as resistance again.
Fibonacci correction levels have been indicated based on the rally in the second half of May.
They showed that the $0.0171 level is likely to act as resistance and a move to $0.0101 or the 78.6% retracement level is likely to occur next.
The white dotted line indicates that the price has formed a higher high in a new sub-timeframe, breaking the bearish structure.
However, NOT is still expected to gather liquidity around the $0.016-$0.0165 area before making a bearish move.
Futures data does not yet indicate bullish confidence.
Source: Coin Analysis
Data from the futures market did not contradict bearish expectations on the price chart. Spot CVD has seen a slight rebound over the past two days but continues to decline.
Open interest has risen in favor, but without spot demand, bullish speculators waiting for a recovery may be disappointed.
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Funding rates were positive, but not particularly so. For example, the rally from $0.011 to $0.028 in early June drove the funding rate to +0.12 and stayed there for a week.
At press time, the exchange rate was close to +0.021, with +0.025 becoming the norm since June 9.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.