- Notcoin formed a bearish market structure after falling below the lowest level.
- The Fibonacci retracement level of 78.6% is the next price target.
The price of Notcoin [NOT] started to show a downward trend again. This was not good news for investors after breaking past trendline resistance on July 6. The bearish pressure could wipe out gains from earlier this month.
An earlier report noted that NOT had a bearish bias. Since then, the token has fallen below short-term lows and could head towards local lows at $0.0099.
Notcoin’s downward trend continued to strengthen
Source: NOT/USDT on TradingView
Two weeks ago, NOT was trading within a range (purple) stretching from $0.0145 to $0.0175. Over the past week, the crypto has posted a price drop of 15.8%.
Additionally, the range low and 61.8% retracement level at $0.014 turned into resistance.
The RSI was below the neutral 50, indicating bearish momentum. The -DI crossed the line above the +DI on July 23 to indicate that a bearish trend was gaining strength.
The OBV has also fallen over the past three weeks.
The steady selling pressure and rising downside momentum suggested that Notcoin is likely to head towards the $0.00989 support level in the coming days.
Futures sentiment is largely bearish
Since July 20, both Notcoin’s price and Open Interest have been trending downward. Both saw small bounces that lasted a few hours, but overall the trend indicated bearish sentiment.
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The spot CVD also continued to decline. This showed that selling pressure had the upper hand. The funding rate was nominally bullish, but does not portend upward price movement.
Therefore, traders can expect losses to continue for NOT.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.