Notcoin’s 2000% Rally Precedes Possible Crash
NAIROBI (CoinChapter.com) – Notcoin (TON) has experienced a meteoric rise, rallying by an astonishing 2000% to reach a current trading price of $6.63 and a market cap of $16 billion. This remarkable rally has been particularly intense in the last seven days, with the price skyrocketing by 400%. However, Notcoin’s breathtaking rally of 2000% has raised concerns about the sustainability of such rapid growth, and key indicators now suggest that a significant price correction could be on the horizon.
Notcoin whale nets $278,000 according to Lookonchain
On-chain data reveals that a whale, whose identity remains anonymous, made a substantial investment of 50,550 TON (equivalent to $278,000) in wrapped NOT (wNOT) tokens before $NOT’s official listing. The tokens were acquired at a rate of 1,000 wNOT for 1 $NOT. As of May 21, the whale converted all their 46.4 billion wNOT into 46.4 million Notcoin, strategically holding the assets until the recent price surge.
Additionally, Notcoin has 1.6 million holders. This is significantly more than other popular tokens like Shiba Inu (1.4 million), Bonk (731k), and Pepe (235k). This distribution highlights Notcoin’s broad appeal among cryptocurrency holders, which can influence market stability and sentiment.
Notcoin’s Bullish Trajectory Faces Potential Correction
While the overall sentiment surrounding Notcoin remains bullish, certain technical indicators suggest a possible price correction soon. The Relative Strength Index (RSI) currently hovers around 68.36, approaching the overbought threshold of 70. This indicates that the asset might be due for a pullback as traders begin to secure profits.
BTC/USD 1-day price chart. Source: TradingView
Furthermore, the Fibonacci retracement levels, which indicate potential support and resistance zones, reveal that $NOT recently tested the 1.0 Fibonacci level at $0.0269927. The cryptocurrency encountered resistance at this level, leading to a minor retreat. Should a correction occur, immediate support is expected around the 0.786 Fibonacci level at $0.0222094 and the upward-sloping trendline evident on the price chart.
The short-term (50-period) Exponential Moving Average (EMA) surpassing the long-term (200-period) EMA further reinforces the prevailing bullish trend. However, the current price remains above both EMAs, bolstering the positive outlook. If a correction unfolds, the 50-period EMA, situated at $0.0131200, could act as a crucial support level for Notcoin.
The upward-sloping trendline on the price chart underscores the ongoing bullish momentum. As long as the price remains above this trendline, the bullish sentiment persists. Conversely, a break below this trendline could signal a deeper correction and prompt investors to re-evaluate market sentiment.
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