Notcoin (NOT), a cryptocurrency linked to the popular messaging app Telegram, is gearing up for a significant price rally, with projections suggesting a potential doubling of its market capitalization in the coming weeks. This optimism is fueled by a combination of strong technical indicators and strategic initiatives, including a substantial token burn.
Notcoin Burns 210M Tokens in a Day
On June 25, the Notcoin team announced the burning of 210 million NOT tokens, valued at $3 million. This move immediately caught the attention of traders, driving NOT’s price up by 16.40% to $0.0164. The token burn is part of a broader strategy to reduce supply and potentially increase demand, a common bullish tactic in cryptocurrency markets.
NOT/USDT daily price chart. Source: TradingView
In addition to the token burn, Notcoin has plans to distribute $4.2 million worth of NOT tokens to “Gold and Platinum users” of its Explore initiative. This initiative allows projects to contribute NOT tokens to the Explore pool, creating campaigns where users earn NOT for completing tasks. This approach not only stimulates demand for the token but also incentivizes user engagement within the ecosystem.
Strategic Focus on the Gaming Ecosystem
Notcoin is currently concentrating on its Notcoin app, which features campaigns that reward users with Notcoin for engaging with new Telegram games. The goal is to establish the app as a central hub for launching other ecosystem projects, thereby driving demand for Notcoin and incorporating additional token burns. These efforts are part of founder Sasha’s four-year roadmap to grow the project.
Technical Analysis: Potential for 100% Price Rally
Technical analysis indicates that NOT’s ongoing price rally may be part of a broader rebound following the token’s test of the lower trendline of its falling wedge pattern. Falling wedges are typically bullish reversal patterns, characterized by two converging downward-sloping trendlines. The price generally breaks above the upper trendline and rises by the maximum distance between the upper and lower trendlines.
NOT/USDT daily price chart. Source: TradingView
Applying these principles to NOT, the target price for July is between $0.023 and $0.031, representing a 45-100% increase from current levels, depending on the breakout point. However, if NOT break below the wedge’s lower trendline, it could invalidate the bullish reversal setup, potentially driving the price down to $0.011, a support level observed from May 31 to June 1.
In summary, Notcoin’s recent token burn and strategic initiatives within its gaming ecosystem position it for a potential major rally. Investors and traders will be watching closely to see if these efforts translate into sustained price growth.
