Telegram-linked Notcoin eyes 100% price rally after 210M NOT token burn
2024.06.26 12:05
Telegram-based Notcoin (NOT) is poised for significant growth, with projections of doubling its market capitalization in the coming weeks. This optimistic outlook is supported by strong technical indicators and fundamental factors, namely the ecosystem’s recent token burn.
Notcoin burns 210M NOT tokens in a day
On June 25, the Notcoin team announced that it had burnt 210 million NOT tokens worth $3 million in a day, a move that grabbed traders’ attention and helped NOT’s price rally by up to 16.40% to reach $0.0164.
NOT/USDT daily price chart. Source: TradingView
The Notcoin team revealed plans to distribute $4.2 million worth of NOT tokens to “Gold and Platinum users” of its Explore initiative. This initiative allows any project to contribute NOT to the Explore pool and create campaigns with tasks for users who earn NOT for completion.
Both updates point to two fundamentally bullish scenarios. For instance, token burns permanently remove a portion of a coin’s supply from active circulation, a theoretically bullish strategy if the demand for the coins increases simultaneously.
Similarly, users earning NOT for task completion ensures continuous demand for the token as new projects and users join the platform. Both features are central to Notcoin founder Sasha’s four-year roadmap for the project.
Related: Crypto clicker games need real token use cases to be sustainable
The Notcoin project is currently focusing on its Notcoin app, which features campaigns that allow users to earn Notcoin by engaging with new Telegram games. The aim is to establish the app as a central hub for launching other ecosystem projects, driving demand for Notcoin, and incorporating token burns.
Notcoin technical analysis: a 100% price rally potential
Price chart technicals suggest that NOT’s ongoing price rally is part of a broader rebound after the token tested the lower trendline of its prevailing falling wedge pattern.
Falling wedges are considered bullish reversal patterns, characterized by two converging, downward-sloping trendlines. As a rule, they will resolve after the price breaks above the upper trendline and rises by as much as the maximum distance between the upper and the lower trendline.
Applying the same technical principles to NOT’s bullish scenario, the upside target for July is between $0.023 and $0.0031, up 45-100% from the current price levels, depending on the breakout point.
NOT/USDT daily price chart. Source: TradingView
Conversely, the bearish scenario is that a break below the wedge’s lower trendline risks invalidating the bullish reversal setup altogether and may take NOT price toward $0.011, a support level from May 31 to June 1.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
