Notcoin Faces Renewed Downtrend Amidst Market Turbulence

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Notcoin’s Recent Decline

Notcoin (NOT) has entered another prolonged downtrend, mirroring the behavior of other Telegram-associated tokens in response to recent news surrounding Pavel Durov’s detention. The arrest of Pavel Durov, the founder of Telegram, has had a significant impact on the market value of Notcoin (NOT), a well-known token within the Telegram ecosystem.

Market Reactions and Pressures

Notcoin, introduced in January as a Web3 gaming project on the TON network, quickly became popular as a mini-application within Telegram. By May, NOT was listed on several major exchanges. However, the recent news about Durov’s arrest has led to a notable drop in NOT’s price, unsettling the market and diminishing the coin’s upward momentum. The Relative Strength Index (RSI), which was nearing the neutral line, has nearly dropped to the oversold level, signaling a rapid decrease in buying pressure.

RSI Chart Source: TradingView

Due to these developments, Notcoin’s adoption rate has significantly decreased, reaching its lowest point in nearly two months. This metric, which tracks the contribution of new addresses to the overall number of active addresses on the network, is now at 15.31%. This is the lowest it has been since early July, indicating increased uncertainty among investors, especially newer ones who have been rattled by the recent events.

Notcoin Adoption Rate Chart Source: IntoTheBlock

Predicted Continuation of the Downtrend

Notcoin’s price has struggled to break out of a nearly three-month downtrend, failing four times. On two occasions, NOT managed to close above the trendline but could not sustain the growth. Currently, the altcoin has lost support at $0.0094 and is nearing $0.0076 after a fall of over 27% in the past three days. There remains a possibility that the price might rebound from this level and re-establish $0.0094 as support. Despite bearish indicators, NOT may still attract buyers looking to capitalize on low prices.

NOT Price Analysis Chart Source: TradingView

However, if the overall decline continues, Notcoin might drop below $0.0076, approaching its historical low of $0.0045. Testing this level would invalidate any bullish outlook.