Notcoin (NOT) is still struggling in the crypto market. The token’s price has plummeted by 31% over the last 30 days, and with weakening network activity and technical indicators, there are growing concerns about its future. This article explores why Notcoin is facing such challenges and what lies ahead for the embattled cryptocurrency.

Massive Token Burn Fails to Revive NOT’s Fortunes

Token burns are often used by cryptocurrency projects to reduce supply, theoretically driving up the token’s value by creating scarcity. However, in the case of Notcoin, even a 233 million token burn has not been enough to reverse its fortunes.

Over the last month, Notcoin has seen a significant price drop, raising questions about the token’s future prospects. Instead of boosting confidence, the token burn seems to have been overshadowed by broader concerns about the project’s network activity and technical performance.

Weakening Price Momentum and Technical Indicators

One of the most concerning aspects of Notcoin’s current performance is its weakening momentum in the spot market. According to data from TradingView, the Relative Strength Index (RSI) for NOT/USD on a 4-hour chart has been on a consistent downward trend since September 9. The RSI is a key indicator that measures the strength of price movements, and a down-trending RSI suggests increasing selling pressure.

As the RSI approaches oversold territory, it’s becoming clear that sellers are dominating the market. This points to the possibility of further price declines unless there is a substantial reversal in market sentiment.

Adding to the pressure, only 23% of Notcoin addresses are currently in profit, according to IntoTheBlock data, with a staggering 65.50% of addresses holding losses. This creates a psychological barrier for investors, many of whom may opt to cut their losses if the token’s price continues to fall.

Declining Network Activity: A Major Concern

Beyond technical analysis, the on-chain metrics paint a grim picture for Notcoin. Network activity has been on the decline, with new addresses dropping by 41.9% over the past seven days. This is a clear indication that fewer users are interested in joining the Notcoin ecosystem.

More alarmingly, active addresses have plunged by 49.2% in the same period, signaling that even existing users are losing interest in the project. A decline in active addresses often reflects diminishing user engagement, which can be disastrous for the long-term viability of a cryptocurrency.

The sharp decline in user activity has also impacted transaction volumes. Since September 13, the number of transactions on the Notcoin network has consistently hovered below 50,000. On September 17, transaction volumes hit a 7-day low of 41.23K, indicating that user participation is drying up.

Adding to the bleak outlook is the drop in whale activity. On September 16, the number of large transactions hit a 7-day low of just three, showing that even deep-pocketed investors are backing away from the project.

Notcoin’s Price Outlook: Is There Any Hope?

At the time of writing, Notcoin is trading slightly above its $0.0070 support level. The token has been stuck in a falling wedge pattern since June, consistently testing lower resistance levels. The next key support zone sits around $0.0044, and with little buying interest in the market, a slip below this level could result in further losses.

Zooming in on the 4-hour chart, it becomes clear that the token has been consolidating between $0.007 and $0.0084 throughout September. While there was a brief rally to $0.0076 on September 17, the token was quickly rejected, continuing its downward trajectory under a descending resistance line.

Without a clear catalyst to ignite buying interest, the token is likely to face ongoing pressure. Investors hoping for a turnaround may have to wait, as both technical and on-chain indicators remain bearish.

Growing Correlation with Ethereum and Bitcoin

Interestingly, Notcoin’s price movement has increasingly become correlated with that of major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). According to Into The Block, the 30-day correlation between Notcoin and Ethereum has risen to 0.81, nearing its highest value of 0.85 seen in August.

This growing correlation suggests that Notcoin’s price is increasingly tied to the broader market, particularly the movements of flagship assets like Ethereum. While this could provide some stability in the event of a market-wide rally, it also means that Notcoin is vulnerable to broader crypto market downturns.

Conclusion: What’s Next for Notcoin?

Notcoin’s struggles highlight the challenges faced by smaller cryptocurrency projects in sustaining user engagement and investor confidence. Despite burning a large number of tokens, the project is still facing declining network activity, weakening technical indicators, and a lack of buying interest.

While the token’s growing correlation with Ethereum and Bitcoin may offer some hope, the overall outlook for Notcoin remains bleak unless there is a significant shift in market sentiment or a major development within the project.