Notcoin struggles despite massive 233M token burn

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Notcoin creators leveraged Telegram’s user base to create a community around the NOT token.
Key indicators show diminished potential for a price recovery despite Notcoin burning 233 million tokens.

Notcoin [NOT] was displaying signs of exhaustion in the spot market, with the token’s price tumbling 31% over the last 30 days. Technical and on-chain metrics indicate weakening momentum, suggesting the price downtrend could endure.

Weakening price strength

TradingView’s NOT/USD 4-hour chart data shows that the Relative Strength Index (RSI) has been trending downwards since peaking near the overbought zone on September 9.

The down-trending 4-hr RSI indicates that selling pressure has been weighing on the pair and could be a precursor to further price declines.

Source: TradingView

Notably, only 23% of Notcoin addresses are in profit at current prices, while a staggering 65.50% are in the red, according to data from IntoTheBlock.

NOT faces notable resistance at $0.0083, where 171,780 addresses holding a total of 3.59 billion tokens are underwater.

Declining network activity

Further reinforcing the bearish outlook, on-chain metrics reveal a steep decline in Notcoin’s network activity, affirming that the excitement around the tap-to-earn game has been shrinking.

New addresses on the network have dropped by 41.9% in the last 7 days, while active addresses have plummeted by 49.2% during the same period.

Source: IntoTheBlock

Consistent with this trend, the active address ratio (expressed as a percentage) has been decreasing across September, indicating dwindling user engagement.

Notcoin registered a 30-day low active addresses ratio of 1.13% on September 17, down from a 30-day high of 3.76% on September 5.

Source: IntoTheBlock

Transaction volumes have similarly taken a hit. The number of transactions on the network has consistently hovered below 50,000 since September 13 and reached a 7-day low of 41.23K on September 17.

The number of daily large transactions has also been decreasing this month, recording a 7-day low of only 3 transactions on September 16. The decline points to reduced whale activity and implies that even deep-pocketed holders are pulling back.

NOT/USDT outlook

NOT was trading slightly above the $0.0070 support level at writing, with the next cushion around $0.0044. The 1-D NOT/USDT chart shows the pair has been moving inside a falling wedge pattern since June, consistently testing new lower resistances.

Given the lack of buying interest in the market, a slip below the current support level could lead to extended losses.

Source: TradingView

Zooming in on the 4-hr chart, NOT/USDT has been consolidating between $0.007 and $0.0084 since the beginning of September.

The pair rose to $0.0076 on September 17 before being rejected and reversing course in line with its recent price action under a descending resistance line.