Notcoin Analysis: Pavel Durov’s Arrest Drives NOT Price Down
With a daily gain of 0.3% and a weekly loss of 11.06%, the Notcoin token is currently trading at $0.01.
Last Saturday night, Pavel Durov, the founder of Telegram, was arrested in France. This arrest has been quite mediatic, but most of all it has affected those cryptocurrencies that are related to Telegram.
In general, cryptocurrencies that are related to Telegram have presented a sharp decline. In particular, the price of Toncoin and Notcoin fell immediately after the news was released.
It is precisely because Telegram is the platform used to interact with such projects that this affectation product of such an arrest occurs. So Durov’s arrest and the motives behind it created the FUD capable of sending prices to such levels.
On the other hand, TON, Notcoin’s blockchain, was originally developed by Telegram and launched independently. So, the real risk would be in the relationship of this project with Telegram, which would not affect the TON blockchain.
The timing of this setback, as the game has already accumulated 35 million users in just 5 months, is also worth mentioning.
Another point of note is that the arrest is part of an extensive police investigation into the “lack of moderation” on the messaging platform, which allegedly allows the proliferation of criminal activity.
As such, the price continues to see a large wave of unrelenting selling, with early investors taking advantage of the situation and causing the large drop in NOT.
Analysis of NOT Price Charts
The first thing that stands out on the NOT charts is the steep drop from $0.0122 to $0.0089. However, on August 5th, the price had already seen a similar drop when it fell to $0.00855.
The recent chart action has left room for the formation of the so-called “Bart Simpson” pattern, which is usually preceded by a period of neutrality, and this could be the price’s next move.
Speaking of resistances, the first hurdle for the price would be to regain the 20 EMA or the $0.010 level, which would pause the bearish forces. After that, the price needs to regain the 50 EMA or the $0.0105 level, which would reverse most of the decline.
The final resistance we can talk about is $0.0122, which would resume the uptrend from where the price fell. However, another fact that could be more important is that the price has recently corrected from this level, so it could be a double top.
On the support side, the price has what appears to be a strong buy zone between 0.00895 and 0.00853, which is quite solid support. However, if this is lost, we would be looking for bottoms around 0.0072 USD.
Another important fact on the chart is that the 20 EMA has crossed to the downside, a sign of bearish strength. However, the RSI at 42 indicates that the price is slightly oversold and a rebound may be imminent.
What to Expect Next for Notcoin and for Pavel Durov?
Pavel Durov would be at risk of being charged with the above crimes as the investigation against him unfolds. Some experts believe that the French justice system will act quickly.
This development could bring transparency to Telegram’s practices in other regions, such as Russia and Ukraine, beyond the reasons for Durov’s arrest and the charges against him.
Nevertheless, and despite how complex this case could become, it does not seem to have an effect on the overall cryptocurrency market, which has remained stable in the current trading day, with the price of BTC currently reaching almost $64,000.
NOT investors suffered a loss of $3.40 million when liquidating their positions. 2.27 million were long orders.
By Leonardo Perez