Highlights:
- Notcoin could drop to $0.00483 after losing the $0.00960 support
- Notcoin’s selling pressure is driven by internal factors and Bitcoin’s weakness
- A bullish breakout for BTC could help NOT reclaim $0.00960
As the cryptocurrency continues to show weakness, Notcoin (NOT), a token linked to the Telegram ecosystem, has not been spared from the downturn. At the time of writing, Notcoin was down by 4.92%, trading at $0.008423.
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This decline is part of a broader market trend, with Bitcoin falling below $60,000 after briefly touching $63,000 earlier in the week. However, Notcoin’s troubles run deeper, driven by specific issues within its ecosystem and the broader Telegram network.
Impact of Pavel Durov’s Arrest on Notcoin
Notcoin’s sharp decline can be attributed, in large part, to the recent arrest of Telegram’s founder, Pavel Durov, in France. Durov, a vocal advocate for digital privacy, runs Telegram, under which the Telegram Open Network (TON) and its associated cryptocurrencies like Notcoin operate.
His arrest has sent shockwaves through the Telegram ecosystem, creating uncertainty and fear among investors. This incident has led to a significant drop in confidence in tokens linked to Telegram, with Notcoin being one of the hardest hit.
Launch of DOGS and the Lack of Market Response
In a different context, the launch of DOGS, a meme coin linked to Notcoin, was expected to generate excitement and drive up prices. Meme coins have been known to capture the imagination of the crypto community, often leading to short-term rallies. However, in the current environment, DOGS has failed to generate the expected momentum. Despite its association with Notcoin, the broader market’s bearishness and the negative sentiment surrounding Telegram have overshadowed this launch.
The muted response to DOGS highlights Notcoin’s challenges as it navigates a harsh market environment. Investors are holding back, preferring to wait for more precise signals before committing more capital to Notcoin or its related projects.
Ongoing Withdrawal Issues and Investor Concerns
Adding to Notcoin’s woes are persistent withdrawal issues that have plagued the token for over a month. Some investors have reported difficulties in withdrawing staked Notcoin, raising concerns about the token’s liquidity and the overall health of its network. These issues have contributed to a lack of confidence in Notcoin, further driving down its price.
Please release our staked token,its going to two months since I placed withdraw
— Nceecute (@nceecute) August 24, 2024
Durov’s arrest, the market’s broader weakness, and these unresolved withdrawal problems have created a perfect storm for the coin. NOT could drop to $0.00483 as it struggles to find stable footing.
Technical Analysis – Bearish Territory and Key Levels to Watch
From the charts, Notcoin’s situation is bearish. The token had been trading within a range, with resistance at $0.0172 and support at $0.00960 for over a month.
However, on August 26, Notcoin lost the $0.00960 support level and has since been trading below this threshold. The low trading volumes accompanying this decline suggest little buying interest at current levels, which could spell further trouble for Notcoin in the short term. If the bearish trend continues, Notcoin could drop to a $0.00483 support level. This would represent a significant decline from current levels, further eroding investor confidence.
On the flip side, if the market sees a bullish reversal, likely led by a resurgence in Bitcoin, Notcoin could attempt to reclaim the $0.00960 level, now acting as resistance. A successful breach of this resistance could see Notcoin test the $0.0172 major resistance level again.
Potential for a Bullish Reversal
Despite the current gloom, there is still hope for a bullish reversal. The broader market could see a lift from upcoming interest rate cuts in the United States. If Bitcoin regains strength and leads a market-wide rally, Notcoin could benefit from this positive momentum. In such a scenario, Notcoin could retest the $0.00960 resistance and potentially push toward the $0.0172 level.
Additionally, the strong support that Pavel Durov has received from the cryptocurrency community could play a role in stabilizing the Telegram ecosystem, which in turn could help lift Notcoin out of its current slump.
Conclusion – There Is Hope for a Price Recovery
Notcoin is facing significant challenges, driven by external factors such as Pavel Durov’s arrest and internal issues like withdrawal problems. These have compounded the effects of the broader market correction, pushing Notcoin deeper into bearish territory. However, with potential catalysts on the horizon, Notcoin has a pathway to recovery.
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