Notcoin (NOT), a cryptocurrency that recently hit an all-time low (ATL) after a prolonged downtrend, has shown signs of recovery following its recent listing on the Kraken exchange. The listing, which occurred earlier this week, fueled a surge in the coin’s price by 21% at its intra-day high, signaling increased investor interest. This surge has brought optimism to the market, suggesting that Notcoin may be on the path to recovery.

Recovery Potential for Notcoin

The price movement of Notcoin has been notably volatile over the past few weeks. After months of declining value, the coin’s price bottomed out, creating a new ATL. However, the recent surge post-Kraken listing has given investors renewed hope for a recovery. The Market Value to Realized Value (MVRV) ratio is at a low of 0.33, a figure that suggests Notcoin is currently undervalued. This low MVRV ratio indicates that the token has reached a saturation point, where most selling pressure has likely been exhausted.

The MVRV ratio, when low, often indicates a good entry point for investors, as it suggests that the market has fully absorbed the selling pressure and the token is now trading at a price below its potential value. This could set the stage for upward momentum and a possible rally.

Oversold Conditions May Trigger a Rebound

In addition to the low MVRV ratio, the Relative Strength Index (RSI) for Notcoin recently dipped into oversold territory, dropping below the critical 30-mark. Historically, when the RSI enters this zone, it has often signaled a potential turning point for cryptocurrencies, with oversold conditions indicating that bearish pressure may be waning. As a result, there could be room for buying interest to push the price higher.

When a cryptocurrency spends extended periods in oversold conditions, it can create an environment where the token experiences renewed demand, leading to a rebound. This is especially true for coins like Notcoin, where the market may start to see value in accumulating the asset at its low point.

The $0.0031 Resistance: Key to Sustaining Momentum

At the time of writing, Notcoin is trading at $0.0030. While the surge following the Kraken listing has been positive, the altcoin faces significant resistance at the $0.0031 level. For Notcoin to continue its upward momentum and further its recovery, it will need to break through this resistance and establish the level as a solid support floor.

If Notcoin can flip $0.0031 from resistance to support, it would signal a breakout from the descending wedge pattern the coin has been following for some time. This could open the doors for a potential rally towards the $0.0040 mark, bringing the coin closer to recovering its losses from the downtrend.

What Happens If Resistance Holds?

Should Notcoin fail to breach the $0.0031 resistance, the altcoin may remain stuck in a consolidation phase beneath this level. In such a scenario, the coin could trade above its ATL of $0.0021 but may fail to make significant progress toward further price recovery. This could lead to the invalidation of the bullish outlook, delaying any potential upward movement.

Conclusion: A Critical Moment for Notcoin

In conclusion, Notcoin is showing signs of a potential recovery after being listed on Kraken, with favorable technical indicators such as the low MVRV ratio and oversold RSI signaling a possible rebound. However, the price will need to break through critical resistance levels, particularly $0.0031, for the recovery to gain sustained momentum. If the token can overcome these barriers, Notcoin could set itself up for further price increases. On the other hand, failure to break through resistance may delay any significant price movements, leaving the coin trapped in consolidation.