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Highlights
- The formation of the double bottom pattern at $0.0091 support highlights early signs of a downtrend maturing.
- A bearish crossover between the 20-day and 50-day exponential moving averages could hinder buyers' recovery efforts.
- Today's 30% price jump, aligned with the 26% drop in 24-hour trading volume, indicates a weakness in buyers' conviction.
Notcoin price soared 30% on Tuesday, outshining other major altcoins during a relief rally. As Bitcoin staged a notable rebound from the psychological $50,000 level, selling pressure on Notcoin eased significantly. During this pullback, most major altcoins experienced a resurgence in demand, highlighting the traders’ persistent inclination to buy the dip.
Also Read: Bitwise Bitcoin ETF: $40B Wealth Manager Taps BITB For BTC Investments
Notcoin Price Rebounds Amid Double Bottom Pattern
Since late July, Notcoin price trajectory on the daily chart has been decidedly bearish, highlighting strong seller dominance. This downturn saw the asset plummet from $0.018 to a low of $0.0085, representing a 52% decline.
However, the falling price witnessed renewed demand pressure at $0.0091, which supported the 93% rally in early July. As market conditions stabilized, Notcoin price sharply recovered to $0.012, simultaneously boosting its market capitalization to $1.274 billion.
According to Coinglass, this price surge triggered the liquidation of $751.1K in short positions, introducing a wave of uncertainty among traders. A more detailed examination of the daily chart reveals this reversal as a potential double-bottom pattern, often indicative of a market bottom.
The Relative Strength Index (RSI) has risen from the oversold territory to 46%, bolstered by increased demand for the altcoin at lower prices. Should this pattern persist, Notcoin might see a 44% increase before encountering significant resistance at $0.18.
However, derivative market data show substantial losses in Notcoin’s open interest (OI) in the first week of August. The OI metrics dropped from $142.15M to $88.8M, registering a loss of 37.5%. This significant decline in OI data indicates waning investor confidence and a potential decrease in market activity.
Also Read: Crypto Market Recovers As Japan’s Nikkei Stock Index Rises 12%
NOT Futures Open Interest | CoinglassMoreover, the potential confluence of the 20- and 50-day Exponential Moving Average (EMA) around the $0.0133 mark creates significant resistance against buyers, hindering potential upswing efforts.
Thus, if the price breaks below the $0.0091 support, the bullish thesis will be invalidated. The post-breakdown fall could plunge the asset 52% to seek support at the $0.0045 level.
Frequently Asked Questions (FAQs)
1. Why is the double bottom pattern significant
2. What does open interest (OI) mean in derivative markets?
3. Which are major support and resistance for NOT price.
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