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Notcoin drops 15% despite bullish announcement, trading volume falls 14%

By:
on Jun 11, 2024
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  • Despite a recent bullish announcement, NOT has seen a significant 15% decline in the past 24 hours.
  • The asset’s market cap is currently at $1.64 billion, positioning it as the 58th-largest cryptocurrency.
  • The declining RSI suggests that the token's hype is waning, even though it remains in an overbought state.

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In a surprising turn of events, the TON-based meme coin and clicker game on Telegram, Notcoin (NOT), has emerged as the top loser among the leading 100 cryptocurrencies.

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Despite a recent bullish announcement, NOT has seen a significant 15% decline in the past 24 hours, now trading at $0.016 at the time of writing.

The asset’s market cap is currently at $1.64 billion, positioning it as the 58th-largest cryptocurrency.

Alongside the price drop, Notcoin’s daily trading volume also saw a notable decline, falling by 14% to reach the $700 million mark.

Community response and supply constraints

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An official announcement on X revealed that the owner of the Notcoin smart contract has revoked their ownership, with many users expressing bullish sentiment in the same X thread and dubbing NOT a “community token.”

This move effectively locks the total supply at 102,701,033,769 NOT, as no additional Notcoins can be added to the circulating or total supply.

Decline in open interest and liquidations

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Further analysis from Santiment shows a decrease in total open interest for NOT, dropping from $67.6 million to $63.4 million over the past 24 hours.

This decline in open interest coincides with over $4 million in liquidations, according to Coinglass data.

Despite the price downturn, the total funding rate for NOT has been close to 0.01% over the past two days, indicating that long-position holders still have a slight edge over short-positioned traders.

Relative strength index and market sentiment

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Moreover, the relative strength index (RSI) for NOT has seen a dramatic drop from 96 on June 2—when the token hit an all-time high of $0.028—to 74 at the time of reporting.

The declining RSI suggests that the token’s hype is waning, even though it remains in an overbought state.

This trend could signal lower price volatility for Notcoin moving forward.

Recent rally and future outlook

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Interestingly, on June 10, the TON-based token experienced a 12% rally following the announcement of new incentives and a surge in its user base.

However, the recent developments indicate that these bullish factors were not enough to sustain the momentum.

In summary, Notcoin’s current market dynamics reflect a complex interplay of user sentiment, market supply constraints, and fluctuating trading volumes.

As the token navigates these challenges, market watchers will be closely monitoring its performance for any signs of recovery or further decline.

Toncoin Crypto Stock Market