- Notcoin continued its downward trend while showing a descending wedge pattern on the daily chart.
- Binance derivatives kept hopes of a near-term recovery alive.
Non-coin [NOT] experienced a prolonged downtrend after reaching its all-time high (ATH) of $0.032 on June 2. The token witnessed consistent selling pressure after the market-wide bearish sentiment started.
As a result, the price fell below both the 20- and 50-day EMAs.
At the time of writing, NOT was trading at $0.00716 and was down about 8% in the last 24 hours. The support level at $0.007 is essential for the bulls to avoid further declines.
Could this falling wedge pattern trigger a potential reversal?
Source: TradingView, NOT/USDT
The current downtrend has pulled Notcoin towards a critical support zone around $0.0072. This level coincided with the lower limit of the falling wedge and is crucial for the bulls to hold as they aim for a near-term reversal.
Historically, falling wedges are considered bullish reversal patterns, but buyers should still trigger an immediate reaction.
In the coming sessions, a close above the 20-day EMA at $0.0081 could pave the way for a potential recovery. In this case, bulls could target the resistance at $0.0095, followed by a possible retest at $0.01.
On the other hand, a break below the $0.0072 support could open the door for a further decline towards the $0.005 level before a meaningful reversal can take place.
The Relative Strength Index (RSI) was hovering around 34.5 at the time of writing, indicating oversold conditions. A reversal from this level could reinforce a bullish divergence, but the absence of a recovery could validate further downside.
Derivative data revealed THIS
Source: Coinglass
On the derivatives front, Notcoin’s open interest (OI) fell by almost 6.92% over the past day, showing rather declining market interest. The overall long/short ratio remained skewed toward shorts, at 0.9102, reflecting bearish sentiment among traders. However, the long/short ratio on Binance showed a value of 3.6992 (across all accounts).
This indicated that while short-term traders were leaning toward short positions, broader market sentiment was not overwhelmingly bearish, leaving room for a potential recovery.
While Notcoin continued to trade under bearish pressure, the formation of a bearish wedge pattern and oversold RSI levels could provide a window for a bullish reversal.
Read Notcoin’s [NOT] Price forecast 2024–2025
A decisive move near the USD 0.0081 resistance could encourage buyers to re-enter the market and drive the price towards USD 0.0095.
However, if the $0.0072 support is not defended, it could trigger a further correction and potentially drag the price towards the $0.005 zone before a major recovery attempt.
