Notcoin's $0.002 Support Tested Amid 5.2% Drop and Rising Volume

Notcoin’s $0.002 support level has come under scrutiny as the token continues to trade near this critical area following a 5.2% decline from the previous day [1]. The price recently formed three consecutive red candles, signaling bearish momentum, but the market’s reaction has been mixed. Although the price has dropped, the 24-hour trading volume for NOT surged by 17%, according to CoinMarketCap, indicating growing interest despite the downward trend [1].

Meanwhile, on-chain data from CoinGlass reveals a $278K outflow as of August 5th, suggesting tokens are being moved off exchanges, a move typically interpreted as accumulation [1]. While this may reduce immediate sell pressure and offer some short-term stability, the broader picture remains precarious. Over the past week, traders have heavily concentrated their positions around two key levels: $0.00193 and $0.00206 [1]. These levels are not only major liquidation zones but also areas of significant leverage. If the price were to fall to $0.00193, nearly $494.5K in long positions would be liquidated. Conversely, a rally to $0.00206 could trigger the liquidation of $1.17 million in short positions [1]. The asymmetry in these figures highlights the dominance of bearish sentiment, with sellers maintaining control for now.

From a technical perspective, Notcoin is forming a symmetrical triangle pattern, and the narrowing range increases the likelihood of a breakout [1]. A daily close above $0.0022 could push the price toward the $0.00247 target. However, a breakdown below the ascending trendline could lead to a 13% drop to the $0.0016 zone. The Supertrend indicator, currently green and positioned below price, suggests ongoing bullish momentum. Yet, this could shift rapidly if the $0.002 level fails.

The mixed signals from price action, on-chain data, and technical indicators suggest a market at a turning point. While accumulation and rising volume hint at potential stabilization, the high concentration of leveraged positions near key support and resistance levels makes the $0.002 support more fragile than it appears. The coming days will be pivotal in determining whether Notcoin can hold its ground or face further downward pressure as bearish forces continue to dominate.

Source: [1] Assessing why Notcoin’s $0.002 support is more fragile than it looks (https://ambcrypto.com/assessing-why-notcoins-0-002-support-is-more-fragile-than-it-looks/)