Telegram’s Notcoin (NOT) is Building a 100% Price Rally Setup

The price of Notcoin (NOT) has dipped by an enormous 50% over a month after establishing its record high at around $0.029. However, the Telegram-linked cryptocurrency is showing signs of bullish revival as it forms a classic inverse-head-and-shoulder pattern.

NOT Price Could Double in Coming Weeks

An inverse-head-and-shoulders (IH&S) pattern is characterized by three troughs: a lower low (the head) between two higher lows (the shoulders).

The pattern completes when the price breaks above the neckline, formed by connecting the peaks at the end of the left and right shoulders, with significant trading volume. In doing so, it rises by as much as the maximum distance between the head’s trough and the neckline.

As of July 12, XRP was forming the right shoulder of its IH&S pattern, awaiting a breakout above its neckline resistance at around $0.017 in July. Should it happen, XRP’s price target will likely be around $0.031, up over 100% from the current price levels.

Conversely, a breakdown below the right shoulder’s deepest point—at around $0.0133—risks taking the price down toward $0.011, which served as support in May.

Notcoin Onboards New Projects, As Promised

Notcoin’s recent price declines coincide with broader crypto market moves to the downside, led by fears of the ongoing Mt. Gox reimbursement and the German government’s sales of hundreds of millions dollars worth of Bitcoin (BTC).

The cryptocurrency’s downtrend further follows its founder Sasha’s decision to move away from Notcoin’s click-to-earn gaming model to focus on creating subsystems—a group of applications on Telegram backed by NOT tokens.

As of late, the Notcoin team has been acting on its promises to expand its ecosystem, evidenced by its collaboration with The Open Network (TON) to support an NFT project called “Lost Dogs.”

Furthermore, the team announced “Explore,” which enables the discovery of new games and earn rewards through Notcoin’s Telegram app.

Interestingly, game developers can benefit from having their projects introduced to over 40 million users. However, developers must contribute a minimum of $20,000 in Notcoin tokens to fund these rewards, which may potentially lead to a higher demand for NOT tokens in the future.

More recently, Notcoin teamed up with DeFi pioneer 1inch and Sequoia-backed attestation protocol Sign to launch a startup accelerator for Telegram and TON’s crypto ecosystems.

Dubbed “Triangle,” the accelerator program aims to attract developers focused on enhancing the TON user experience, creating popular “tap-to-earn” mini-apps, and launching consumer applications that bridge Web2 and Web3.

These strong fundamentals may serve as tailwinds to the NOT’s technical analysis discussed above in the coming weeks, with signs of lowering interest rates furthering the upside scenario in Notcoin and elsewhere in the crypto market.