Notcoin shows signs of recovery as investors buy the dip

Notcoin (CRYPTO:NOT), the Telegram-based cryptocurrency, has seen a significant decline in value, dropping 62% from its all-time high in June.

The price recently hit $0.010, marking a notable fall from its August 19 level of $0.012, which turned out to be a false breakout.

However, recent market indicators suggest that Notcoin may be on the verge of a recovery as investors begin to buy the dip.

The Chaikin Money Flow (CMF), a technical indicator that measures buying and selling pressure, has moved from the negative to the positive region on the daily chart.

This shift in the CMF indicates that market participants are accumulating Notcoin, leading to a bullish divergence between the indicator and the token's price.

Historically, such divergences have signaled potential price rebounds, as seen in July when a similar pattern preceded a 43% price increase.

Additionally, the Long/Short Ratio for Notcoin, which reflects investor sentiment in the derivatives market, has reached a reading of 1.

This ratio suggests that there are currently as many buyers as sellers in the market, indicating a balanced outlook.

A ratio above 1 would imply more bullish sentiment, while a ratio below 1 would suggest a bearish trend.

The current price action shows a descending triangle on the NOT/USD chart, a pattern typically associated with bearish continuation.

However, in some instances, this formation can lead to a reversal, which appears possible for Notcoin given the increasing buying pressure.

If buyers manage to outpace sellers, Notcoin could break above the bearish pattern, potentially reaching $0.013 in the short term and possibly $0.016 if the momentum continues.

Despite this optimistic outlook, there are risks.

If large investors, known as crypto whales, continue to sell off their holdings, Notcoin's price could decline further, potentially dropping to $0.0085.

The future movement of Notcoin’s price will depend on whether the current buying pressure can sustain and overcome the selling pressure in the market.

At the time of reporting, the Notcoin price was $0.01099.