Notcoin volume surges 50% amid early warning signs

Notcoin (CRYPTO:NOT), the cryptocurrency linked to a Telegram-based clicker game, saw its trading volume rise by 50% in the past 24 hours, reaching $412.84 million.

This spike occurred after speculation on social media suggested that Telegram founder Pavel Durov had been released by French authorities.

However, the rumor was later debunked, and on-chain analysis now suggests that the recent price rise of Notcoin may not be sustainable.

Following news that Durov had been released on a €5 million bail but restricted from leaving France due to charges of illicit activity on the app, Notcoin's price climbed to $0.0092.

While this initially appeared positive, the increase in volume alongside a falling price hints at waning interest in the cryptocurrency.

If this trend continues, it could bring an end to the brief rally observed.

On-chain data from IntoTheBlock shows that Notcoin's Bulls and Bears indicator currently points to more bears than bulls in the market.

This means more participants are selling NOT rather than buying it, signaling selling pressure.

If this situation persists, Notcoin's price may struggle to recover and could potentially drop to a new low.

The current market behavior has also led to the formation of a bearish flag pattern on the 4-hour chart for Notcoin.

This pattern typically forms after a downtrend with increased volume, followed by a period of consolidation with decreasing volume.

If NOT fails to break above the upper trendline of this bearish flag, its price could drop to $0.0085.

Additionally, the Relative Strength Index (RSI) for Notcoin remains below the neutral line, indicating a lack of bullish momentum.

The low RSI reading and persistent selling pressure suggest that the bears currently dominate NOT’s price trend.

However, if buying activity increases, Notcoin could move toward $0.0095, potentially reversing the bearish sentiment.

At the time of writing, the Notcoin price was $0.008579.