Notcoin (NOT) Price Analysis: Bearish Triangle Setup Could Spell Doom For The Token

Notcoin token price has formed a bearish technical pattern called the ‘descending triangle pattern.‘ Market analysts often consider the descending triangle a bearish continuation signal.

The native crypto of Telegram-based game Notcoin seems to be in a sticky situation.

Since July 20, the token has painted six consecutive red candles, denoting a continuous downtrend.

This bearish momentum has forced the NOT/USD pair to shed all its gains since July 7. Furthermore, a technical setup could spell more trouble for the exchange rate for 1 NOT against USD or INR.

Bearish Triangle Setup Could spell Doom For Notcoin

The Notcoin token price has formed a bearish technical pattern called the ‘descending triangle pattern.’

Market analysts often consider the descending triangle a bearish continuation signal.

The configuration features a downward-sloping upper trendline, which gradually reduces the price action’s highs, and a flat lower trendline, which is a consistent support level the price finds difficult to break.

Moreover, the pattern suggests that selling pressure is intensifying, leading to successively weaker rallies. In this setup, the potential price target is typically gauged by the maximum height of the triangle at its widest point.

Hence, NOT price is yet to breakout from the descending triangle pattern. However, confirming the bearish setup might result in the NOT/USD pair dropping nearly 70% to reach the projected price target near $0.0041.

Bulls Are Fighting Back, Barely

Meanwhile, Notcoin bulls are trying to fight back against the bearish pressure.

NOT prices are trying to hold above the 0.382 FIB support near $0.0125 after dropping nearly 5% on July 25.

If the downtrend continues, the NOT/USD pair might breach below the immediate support and drop to the support level near $0.0112 before recovering.

On the other hand, a rally from here would find NOT price face the 20-day EMA (red) resistance near $0.015. Moreover, breaking and consolidating above the immediate resistance would likely bring the Notcoin price to the 0.786 FIB resistance near $0.0171.

The relative strength index for Notcoin remained neutral, with a score of 42.22 on the daily charts. The down-sloping trendline suggests that the bearish momentum for NOT might continue.