TradeCityPro | NOT: Tracing the Decline of a Telegram Titan👋 Welcome to TradeCity Pro!
In this analysis, I will review NOT, one of the Tap-to-Earn projects on Telegram, currently ranked 171 on CoinMarketCap with a market cap of $213 million.
📅 Daily Timeframe
In the daily timeframe, after this coin was listed in May last year, it initially had a strong bullish movement starting from 0.004733, reaching 0.022602, providing significant profits to its early investors.
🎲 However, after this rally, a downtrend started, and in the first bearish leg, the price dropped to 0.010029. In the next leg, the decline continued to 0.005699, where the price consolidated for a long time within a range box between 0.005699 and 0.010029.
✅ With the break of the 0.005699 support, the next bearish leg started. Since there were no further historical supports on the chart, I used the Fibonacci Expansion tool to determine potential support zones. As shown, the key support levels identified were 0.002516 and 0.003382, where the price formed another range box and consolidated for some time.
⚡️ After the break of the 0.002516 low, the price initiated another bearish leg, and the next potential support zones where the price may react are 0.001728 and 0.001071.
🔽 If you already have a short position on this coin, you can wait to see which level the price reacts to before taking profits.
🛒 For those considering buying this coin, I want to make it clear that I personally do not buy this coin in the spot market, and I also do not trade it in futures with my main capital. The reason is that this project lacks strong fundamentals—it was hyped within Telegram, which temporarily attracted liquidity. However, as you can see, this liquidity exited the market, leading to its current decline.
🔼 Nevertheless, if you still want to buy this coin, the first condition is to wait for a trend reversal.For now, the trend reversal confirmation level is the breakout of 0.003382. However, if the price forms higher highs and higher lows and we get Dow Theory confirmation, then a buy entry can be considered.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️