Notcoin (NOT) Price Rebounds 50% After Crypto Market Rout — Selloff Ahead?

Telegram-linked Notcoin (NOT) has emerged as a standout performer following the rout that wiped off  $212.79 billion worth of crypto market capitalization on Aug. 5.

As of Aug. 7, NOT’s price was trading for as high as $0.012, up over 50% when measured from the local low of $0.0085 two days prior. In comparison, the crypto market capitalization recovered approximately 17.50% of its losses—an underperformer compared to the TON Blockchain‘s gaming token.

Is Notcoin Bottoming Out?

From a technical perspective, Notcoin’s rebound signals a failed breakdown attempt emerging out of its prevailing descending triangle pattern, akin to what transpired in July 2024.

If the fractal repeats, NOT’s price could reclaim the triangle’s lower trendline—at around $0.0130—as support. This move increases the cryptocurrency’s potential to continue its recovery toward the upper trendline at around $0.0146, aligning with the 0.618 Fibonacci retracement level.

The move toward the upside target will likely require further confirmation with the assistance of NOT’s daily relative strength index (RSI). As of Aug. 7, the RSI is trending below an ascending trendline resistance, which, if broken to the upside, could validate NOT’s recovery toward its triangle’s upper trendline.

Otherwise, the Telegram-tied cryptocurrency risks another pullback toward its previous low at $0.0085, which further signals a bearish continuation, primarily when NOT is already trading 60% below its local high of $0.029.

The Inverse-Cup-and-Handle Pattern Perspective

NOT’s pullback from the descending triangle’s lower trendline risks triggering the inverse-cup-and-handle (IC&H) pattern in the coming weeks.

Notably, an IC&H pattern forms when the price forms a rounded top, followed by a small consolidation period. Meanwhile, it resolves when the price breaks below the pattern’s common neckline support and falls by as much as the distance between the cup’s peak and neckline.

As of Aug. 7, NOT’s price had entered IC&H’s consolidation stage, eyeing a breakdown below its neckline support of around $0.0095.

Should the cryptocurrency enter the breakdown stage, its likelihood of reaching $0.005 by August’s end will increase. Interestingly, this downside target served as support during the June 2024 session.