The Notcoin has short-term upside potential, but lacks demand. Higher timeframe price action indicates a possible further decline.
Despite Bitcoin (BTC) struggling to stay above $6100, Notcoin [NOT] has seen some gains in the past two days.
On June 16, AMBCrypto pointed out that the social sentiment and price trajectory are bullish in the short term.
Subsequent price movements have reinforced the bearish trend. There has been a short-term reversal in the past 24 hours, but bears are likely to take control soon.
Trendline resistance may reject bulls
A trendline resistance (orange) has been drawn from the highs in early June. This trendline acted as resistance during the mid-June bullish run and is likely to do so again.
A set of Fibonacci retracement levels has been drawn based on the rebound in late May.
They indicate that the $0.0171 level could serve as resistance, with a potential move towards $0.0101 or the 78.6% retracement level.
The white dashed line represents price making new highs on lower timeframes, breaking the bearish structure.
However, before taking bearish actions, it is expected that NOT will gather liquidity in the range of $0.016 to $0.0165.
Futures data does not show optimistic beliefs
Data from the futures market does not counter the bearish expectations on the price chart. Spot CVD continues to decline, despite a slight rebound in the past two days.
Open interest rates show a similar spark and climb, but without spot demand, bullish speculators waiting for a recovery may be disappointed.
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Funding rates are positive but not particularly high. For example, with a rise from $0.011 to $0.028 in early June, the funding rate reached +0.12 and remained stable over a week.
At the time of writing, this rate is close to +0.021, with +0.025 being the norm since June 9.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other type of advice, and is solely the opinion of the author.
