Notcoin (NOT) Price Prediction: Buying Pressure Returns as Market Takes Comeback as a Good Sign

The price of the native token of the popular Telegram-based tap-to-earn game Notcoin (NOT) increased by 24.93% in the last 24 hours.

The price of Notcoin (NOT), the native token of the popular Telegram-based tap-to-earn game, has seen a significant increase of 24.93% in the last 24 hours. This surge comes after the token initially reached a two-month low of $0.0082 on August 5.

As Notcoin (NOT) price recovers from a 24-hour low, here's what traders are doing and what to expect next.

After reaching a local top on July 13 and notching a gain of over 340% from its June 22 bottom at $0.006, Notcoin (NOT) began forming lower highs and lower lows on the dailyの時間割, signaling a shift in market structure from bullish to bearish.

However, the selling pressure was short-lived as buyers stepped in at crucial support levels. For example, on August 5, NOT price dropped to a low of $0.0082 before encountering buying pressure, which led to a 24-hour candle closing with a lower wick.

This candlestick pattern is known as a "bear trap," and it often indicates that the bears are overextending themselves and that a bullish reversal is likely.

After reaching a low of $0.0082 on August 5, Notcoin (NOT) price began to show signs of recovery from the bearish market structure. As the token rises from this crucial support level, traders and investors can gain valuable insights into the market sentiment and future price direction by analyzing the Long/Short Ratio and Open Interest (OI).

Notcoin traders massively buying the dip, but what does Open Interest say?

One way of knowing the position of traders is by looking at the Long/Short Ratio. This ratio represents the proportion of longs (buyers) to shorts (sellers) in the market. With the ratio, one can have an idea of investors’ sentiment in the market.

When the Long/Short ratio rises, it means there are more long positions than shorts in the market, indicating that most traders expect the price to rise. However, a falling ratio suggests bearish anticipation.

Data from Coinglass shows the ratio in NOT’s case has been increasing, suggesting that many traders are positioning themselves to profit from Notcoin’s continued hike.

Furthermore, on-chain data obtained from Santiment shows an increase in Open Interest (OI) as well. OI refers to the sum of all open contracts in the market, and it increases or decreases based on net positioning.

When the OI decreases, market participants are adding more liquidity to the market and increasing their positioning. However, a decrease implies a rise in position closure.

For NOT, the rise in Open Interest shows that buyers are more aggressive. If sustained, this rise in speculative activity could help the cryptocurrency sustain the price increase.

For instance, historical data traced back to June shows that a rise in Open Interest helps NOT price increase. During that period, NOT's price reached an all-time high of $0.028 as the OI jumped above $220 million.

Subsequent short-lived hikes also reveal a surge in Open Interest, further proving the strong correlation between the price and indicator. Therefore, if NOT experiences a substantial rise in this indicator,  the value of the token may exceed $0.11 by a wide margin.

From a technical perspective, Notcoin (NOT) is slowly forming a bullish structure on the dailyの時間割. One indicator that could help propel the token's price further is the Cumulative Volume Delta (CVD).

The CVD is an indicator that measures the net difference between buying and selling volume in the spot market. When CVD is negative, as it was on August 5, it indicates a high rate of selling. However, as of press time, the spot CVD has returned to positive, signaling that market participants have bought the dip.

If this buying volume continues to rise, the NOT token may sustain its upswing. Increased buying pressure could drive NOT’s price up to $0.013. However, if the cryptocurrency experiences another wave of selling pressure, the value could drop as low as $0.0085.

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