Notcoin price left in the dust as a rare pattern points to a 220% surge

Notcoin, the once-popular tap-to-earn token, has seen a significant decline in value as most other cryptocurrencies continue to rise on Friday, Nov. 8.

As of Nov. 8, Notcoin (NOT) was trading at $0.0063, down 78% from its highest point earlier this year. This drop has led to a sharp reduction in its market capitalization, which now stands at just over $648 million, compared to its all-time high of $2.5 billion.

In contrast, other major cryptocurrencies have surged, with Bitcoin (BTC) hitting a record high of $76,000, and the overall cryptocurrency market cap climbing to $2.7 trillion.

Notcoin’s decline has mirrored the struggles of other tap-to-earn tokens like Catizen, Hamster Kombat, and DOGS, all of which have seen their prices drop by double digits. One of the primary reasons for Notcoin’s fall seems to be a decrease in user engagement and interest, following the initial airdrop and subsequent exchange listings. While specific user numbers are not publicly disclosed, reports suggest that Notcoin’s user base has been shrinking.

This trend reflects a broader pattern within the play-to-earn (P2E) and tap-to-earn sectors. For instance, Hamster Kombat has reportedly lost over 260 million users, leading to a significant decline in the value of its token. Similarly, other once-popular games like Axie Infinity (AXS), which surged to $165.93 in 2021, have experienced a drastic fall, with AXS down more than 80% from its peak.

Additionally, Decentraland and The Sandbox, both of which once attracted significant attention in the virtual world and NFT spaces, have seen their tokens drop sharply, further illustrating the challenges facing many P2E projects as market interest wanes and user engagement declines.

Notcoin price could surge

There are emerging signs that Notcoin (NOT) could experience a potential price rebound in the near term.

One key indicator is that Notcoin’s futures open interest has been on a downward trend after peaking at over $293 million just a few months ago. Falling open interest, combined with weak social media activity, is often seen as a precursor to a strong market recovery, suggesting that market participants may have already priced in the decline, leaving room for a potential reversal.

Additionally, Notcoin’s price has formed a falling wedge pattern, which is a well-known technical reversal signal. This pattern occurs when the price forms lower highs and lower lows, creating two converging trendlines. As these trendlines approach each other, the likelihood of a bullish breakout increases, indicating that the price may soon see a significant bounce back.

These technical indicators, along with the overall market conditions, could set the stage for a potential rally in the price of Notcoin in the coming days. If the coin manages to break out of this pattern, it could regain some of the ground lost in recent months.

A potential rebound in Notcoin’s price could spark a fear of missing out (FOMO) among investors, potentially driving the price toward the next key psychological level of $0.02. If the coin reaches this level, it would represent an approximate 220% increase from its current price of $0.0063.

This bullish scenario hinges on the successful formation of a reversal, and $0.02 would serve as a critical resistance point. However, this upward momentum would be invalidated if Notcoin falls below the strong support level at $0.0040, as this would signal further bearish pressure and diminish the chances of a sustained recovery.

In summary, a rebound to $0.02 is possible, but $0.0040 remains a critical level to watch for the continuation of the bullish outlook.