Notcoin (NOT), a relatively new entrant in the cryptocurrency market, has recently formed a falling wedge pattern on its price chart. This technical formation is characterized by converging trendlines that slope downwards, signaling a potential bullish reversal.
Typically, a falling wedge pattern occurs after a prolonged downtrend, indicating that the asset’s price is likely to break out to the upside. The emergence of this pattern in Notcoin’s chart is drawing attention from traders and investors who are keen to understand its implications for future price movements.
A confirmed breakout from the falling wedge could signal the end of Notcoin’s downtrend and the beginning of a new upward trajectory. However, it is essential to consider other market factors and indicators to gauge the strength and sustainability of such a reversal.
This market outlook aims to explore the potential scenarios for Notcoin following the formation of the falling wedge pattern, providing insights into what traders and investors might expect in the near future.
Analyzing Market Outlook For Notcoin On The 4-Hour And 1-Day Chart
As of right now, the price of Notcoin is currently trading above the 100-day Simple Moving Average (SMA) on the 4-hour chart and is moving within the triangle, suggesting that the wedge might continue for a while before there is a potential break out.
Confirming the above claim, the RSI line in the 4-hour RSI indicator has dropped below 50%, suggesting that sellers are still active in the market and that the asset will remain active within the triangle for a while.
Meanwhile, in the 1-Day timeframe, it can be observed that Notcoin’s price is attempting a retest after a successful breakout above the upper base of the wedge. This means that Notcoin might go bullish after the retest. Also, the 1-Day RSI confirms this retest as the RSI line is seen dropping down from the overbought session toward the 50% level.
Price Implication In The Event Of A Breakout
In the event of a successful break above the wedge, Notcoin will begin to move upward toward the $0.029405 resistance level. If it breaks above this level, it will move higher to create a new high.
However, if Notcoin’s price decides to do the usual and break below the wedge, it will start to descend in the direction of the $0.011381 support level. The price may move much farther to test the $0.007953 level and possibly other levels on the chart if it breaks below this support level.
NOT‘s price was down by -1.13% as of the time of writing, trading at approximately $0.019, with a market capitalization of over $1.9 billion and a 24-hour trading volume of over $818 million.
Featured image from Binance, chart from Tradingview.com