NOT’s price hasn’t been doing well, but can it do better?
- NOT depreciated by 19.86% over the past week Notcoin’s dip now leaves 100% of its holders out of the money
Over the past week, Notcoin [NOT] has seen some strong downward pressure on the charts. In fact, NOT dropped from a local high of $0.0032 to a low of $0.0022. While it has attempted to reclaim higher resistance, its downtrend may still be in play.
At the time of writing, Notcoin was trading at $0.0023. This marked a 7.97% fall over the last 24 hours. Equally, NOT declined on the weekly and monthly charts, dipping by 19.86% and 15.31%, respectively.
This sustained decline has been a tragedy for Notcoin holders. Consider this – All Notcoin holders are currently out of money, according to IntoTheBlock’s Data. What this means is that 0% of holders are in profit, while 100% of holders are at a loss, while no holders are at the money.
Source: IntoTheBlock
When all holders are out of the money, it means that the press time price is lower than the prices at which all holders acquired the crypto. Such a massive decline could see some holders turn to panic selling to cut losses, leading to more downward pressure.
At this level, if weak hands in the market give up, a final flush could emerge before hitting the bottom.
Historically, when all addresses are at a loss, it could be indicative of a major bottom as sellers get exhausted. Therefore, this means that the market could see another strong dip on the price charts, before a trend reversal.
Is Notcoin set for more losses?
With Notcoin holders suffering massive losses, AMBCrypto’s analysis revealed that NOT flashed strong bearish sentiments as demand dropped and sellers dominated.
Source: Messari
This market bearishness was evidenced by the fact that Notcoin’s fully diluted market cap fell to hit an all-time low.
Such a drop in market cap suggested that as the price depreciated, NOT faced a significant sell-off while no new buyers entered the market. To put it simply, there have been low capital inflows into the network, leading to more losses and extended seller dominance.
Source: IntoTheBlock
This selling pressure is becoming even more dominant among large holders.
According to IntoTheBlock, whales are now selling more NOT tokens than they are buying. As such, large holder’s netflow declined from 4.81 billion to 15.8 million. This hinted that more whales are continually turning bearish and are selling to cut losses.
Source: Messari
Finally, the lack of capital inflows into Notcoin arises from greater risk associated with the asset. This risk can evidenced by the fact that its Sharpe ratio fell to hit a negative value.
In fact, NOT seemed to be underperforming relative to risk-free assets, making it less attractive to investors. With poor returns relative to the risk taken, investors shy away from the token.
The prevailing conditions position NOT for more losses on its price charts. Therefore, if the trend persists, we could see NOT breach $0.0022 critical support and hit a 9-month low of $0.0020. However, if sellers get exhausted and buyers take the opportunity to buy the dip, will attempt a reversal to $0.0031.
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