Notcoin outpaces Solana, BNB and targets $0.1
In the latest trading data, Notcoin [NOT] experienced a remarkable surge in its 24-hour trade volume, surpassing Solana [SOL] and BNB. Records from Santiment showcased NOT's volume at an impressive $4.54 billion.
Conversely, its valuation saw a minor setback, pegged at $0.021 per unit. This represented a significant 287% growth over the last week, despite a slight dip from its peak price of $0.028 on June 2nd.
Comparatively, within the same timeframe, BNB's trade volume stood at $1.75 billion, with Solana slightly behind at $1.72 billion. These figures highlight a heightened investor interest in NOT, reflected through a substantial capital influx.
Sequential Rallies
To those catching up, Notcoin made its entry approximately a month ago. Early coverage by AMBCrypto touched on initial sell-off pressures post-launch.
Subsequent reporting delved into the catalysts behind its price escalations and ascent into the top 100 by market cap. Our projections had estimated that NOT would breach the $0.01 mark.
Surpassing expectations, Notcoin quickly achieved this milestone and even soared into the market cap's top 60, overtaking Bonk [BONK].
Moreover, Notcoin's Open Interest (OI) witnessed a significant boost over the recent weekend. Data from Coinglass revealed a peak OI of $273.02 million for NOT.
A declining OI typically signals a withdrawal of capital as contracts conclude. On the flip side, an uptick indicates fresh liquidity entering the market. For Notcoin, this rise in OI was instrumental in sustaining its bullish trend, as growing Open Interest can underscore the momentum of the asset's movement.
That said, investors and holders of NOT should proceed with caution.
NOT's Overbought State Poses Risk to Investors
Specifically, the Relative Strength Index (RSI) on the 4-hour chart read 72.60. The RSI is a momentum oscillator, where a value below 30 suggests an asset is undervalued.
However, a figure exceeding 70 hints at the asset being overvalued, as was the case with Notcoin. This condition suggests a potential decrease in NOT’s value.
Should this downturn persist, NOT's price might retract to $0.015. Nonetheless, a resurgence in buying momentum can reverse the trend.
Additionally, the Weighted Sentiment rating spiked, indicating a bullish outlook among market players, albeit reaching potentially unsustainable highs. This could lend credence to the anticipated bearish shift in momentum.
Meanwhile, in the derivatives arena, Notcoin's activity was noteworthy.
Per Coinglass, NOT trailed only behind Bitcoin [BTC] in 24-hour liquidation figures.
This period primarily saw short positions bearing the brunt of a $23.48 million liquidation. Yet, a recent turn in NOT’s price dynamics has predominantly impacted long positions, culminating in a significant $1.75 million liquidation event.
