Notcoin posted a 36% price increase within 24 hours before reversing sharply as investors quickly locked in profits. The rally prompted the most significant selling pressure the Telegram-based token has experienced since early June. The sudden price spike came as the token's correlation with Bitcoin weakened to 0.43, signaling a departure from broader market movements.
What Happened: Sharp Rally and Reversal
The NOT price peaked at $0.000750 during intraday trading before falling to $0.000615.
The correlation between Notcoin and Bitcoin declined significantly to 0.43, according to data from TradingView. This represents a sharp drop from previous levels where NOT tracked BTC movements more closely.
The Chaikin Money Flow indicator confirmed heavy outflows over the same period, moving deeper into negative territory as investors exited positions following the rally.
The separation from Bitcoin's price action could shield NOT from direct downside pressure if BTC continues its volatility. However, it introduces new risks if Bitcoin rebounds strongly, potentially pulling liquidity away from smaller speculative assets like Notcoin.
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Why It Matters: Liquidity Risks Mount
The selling pressure following the rally undermines the initial bullish momentum that fueled NOT's surge. Sustained outflows at the current pace could limit near-term recovery attempts, market data suggests.
If Bitcoin begins recovering, NOT faces additional headwinds. A BTC rebound typically redirects capital toward larger, less volatile assets, which could push NOT below its $0.000609 support level.
Breaking through this floor would expose the token to a potential decline toward $0.000552.
Conversely, if Bitcoin drops again and investor confidence in NOT returns, the token could find support at $0.000609. A successful bounce from this level may lift the price toward $0.000723, invalidating the current bearish outlook.
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