Notcoin dominates the market with short positions, while altcoins fall below the 20 and 50 moving averages on the 4-hour chart. The open interest and long/short ratio of altcoins confirm the bearish sentiment.
Notcoin [NOT] recently fell below the 20 and 50 moving averages on the 4-hour chart, showing strong bearish signals. With NOT reversing from the resistance level of 0.02, sellers once again exerted pressure, forcing it to decline.
If buyers re-enter the market and hold the support level at $0.129, Notcoin may experience a bullish reversal in the short term. At the time of writing, Notcoin’s trading is approaching this support level.
The recent reversal of Notcoin has formed a descending wedge pattern.
After bouncing back from the support level of $0.004 in May, NOT has shown a gradually rising trend. Altcoins surged over 470% after rebounding from this support to reach an all-time high of $0.029 on June 2.
During this rebound, Notcoin saw a series of green candles and a sharp upward trend. However, the reversal from the resistance level of $0.027 to a month-long decline laid the foundation.
The price continued its downward trend, dropping to test the support range of $0.11-0.12. On the 4-hour chart, altcoins fell below the 20 and 50 moving averages, indicating a strong bearish bias.
Meanwhile, the price trend of NOT has formed a classic descending wedge pattern on its chart. It is worth noting that before the descending wedge pattern, there was a steep upward trend, which is usually an early sign of a bullish reversal.
However, the recent death cross of the 20/50 EMA may hinder the prospects of a near-term recovery. Buyers should wait for a close above the current descending wedge pattern to assess the possibility of an upward trend.
A potential closing price above the current pattern could help buyers test the level of $0.02 in the coming weeks. On the other hand, a sustained closing below the $0.129 level may not indicate a short-term downtrend.
Here, the target of the bears is to retest the key level of $0.0114.
The Relative Strength Index (RSI) is in bearish territory after falling below its MA line. Any reversal from this overbought position would help confirm a bullish reversal bias.
Open interest declines
Analysis of open interest for outstanding contracts shows that sellers are in a relatively advantageous position. The open interest of NOT on all exchanges has fallen by nearly 5% in the past day.
In reality, here is the market value of not in BTC terms
This decline also aligns with a nearly 6% price drop in the last 24 hours.
Furthermore, the long/short ratio on Coinglass for the past 24 hours is approximately 0.88. This indicates that there are slightly more short positions than long positions, reaffirming the bearish bias.
