Telegram-based cryptocurrency Notcoin (NOT) is poised for substantial expansion, with forecasts indicating a potential doubling of its market capitalization in the forthcoming weeks. This optimistic outlook stems from robust technical indicators and fundamental factors, notably the recent token burn within the ecosystem.
On June 25, the Notcoin team announced a significant burn of 210 million NOT tokens valued at $3 million in a single day. This strategic move captured traders’ attention and spurred NOT’s price by as much as 16.40%, reaching $0.0164.
The team also disclosed plans to allocate $4.2 million worth of NOT tokens to “Gold and Platinum users” of its Explore initiative. This initiative enables projects to contribute NOT to the Explore pool, fostering campaigns with tasks for users who earn NOT upon completion.
Both developments underscore two fundamentally bullish scenarios. Token burns effectively reduce a portion of a coin’s supply from circulation permanently, a strategy theoretically advantageous when demand for the coins is concurrently rising. Likewise, the ongoing issuance of NOT tokens for task completion ensures sustained demand as new projects and users engage with the platform, aligning with Notcoin founder Sasha Plotvinov’s comprehensive four-year project roadmap.
The Notcoin project is currently concentrating on its app, offering campaigns where users can earn Notcoin by participating in new Telegram games. The objective is to establish the app as a central launchpad for other ecosystem projects, thereby boosting demand for Notcoin and integrating token burn strategies.
Technical analysis of Notcoin indicates the potential for a 100% price rally. Price charts reveal that NOT’s current upward momentum forms part of a broader recovery following a test of the lower trendline of its descending wedge pattern. Falling wedges are recognized as bullish reversal patterns, defined by converging downward-sloping trendlines. Typically, a breakout above the upper trendline suggests an upside target for July ranging between $0.023 and $0.031, marking an increase of 45% to 100% from current levels, contingent upon the breakout point.
Conversely, a breach below the lower trendline of the wedge risks nullifying the bullish setup, potentially leading NOT’s price towards $0.011, a support level observed from May 31 to June 1.
It’s important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any financial decisions.