Telegram-linked Notcoin (NOT) has seen a decline in buying momentum recently. The altcoin is now trading at $0.0076, marking a 3% decrease over the past week.

On-chain and technical indicators suggest that the downward pressure on the token may continue. Here is why.

Notcoin Poised To Extend Downtrend

In the past seven days, large holders, often referred to as whales, have been reducing their NOT holdings. This is reflected in the 101% decline in Notcoin’s large holders’ netflow recorded over the past week. 

Large holders are addresses holding more than 0.1% of an asset’s circulating supply. The large holders’ netflow metric tracks the net accumulation or distribution of an asset by these holders. A decline in an asset’s large holder netflow indicates that whale addresses are offloading their holdings. 

This is a bearish signal that suggests rising selling pressure and an increased risk of a price drop. Moreover, when retail investors notice large holders offloading large quantities of an asset, it often erodes their confidence, prompting them to sell, accelerating the price decline.’

Read more: What is Notcoin (NOT)? A Guide to the Telegram-Based GameFi Token

Additionally, over the past month, Notcoin’s short-term holders (STHs) — those who have held their tokens for less than 30 day — have decreased their holding time. Typically, a decline in holding time indicates that investors are selling the asset more quickly than before.

The situation is particularly precarious with STHs, as they hold a significant portion of the asset’s circulating supply. Consequently, when they shorten their holding periods and sell their coins, they put substantial downward pressure on the asset’s price.

NOT Price Prediction: All-Time Low In View

Notcoin is currently trading at $0.0076, just above the support level of $0.0069. With selloffs gaining momentum, NOT bulls may struggle to defend this support. If they cannot do so, the next price target for NOT could be its all-time low of $0.0010, a level last seen on May 16.

Read more: 5 Top Notcoin Wallets in 2024

However, if the Notcoin experiences a resurgence in demand, it could bounce off this support line and initiate an uptrend toward $0.012, negating the bearish outlook mentioned above.

Kraken is gearing up to introduce its own blockchain, Ink, in early 2025. The new platform will support dApps for trading, borrowing, and lending without the need for intermediaries. 

Ink will be a Layer-2 blockchain powered by Optimism’s OP Stack. This is the same technology that powers Coinbase’s Base, which has grown into one of the leading DeFi platforms since its launch. 

In an interview with Bloomberg, Andrew Koller, the founder of Ink, mentioned that a test version of the network will go live later this year. It will provide exclusive early access to the developers. 

Initially, Kraken will handle the role of the chain’s sequencer, managing transactions and generating revenue through this process. Over time, this responsibility will be decentralized and distributed among multiple participants.

Read More: Kraken Fees vs. Binance Fees vs. Coinbase Fees: A Detailed Comparison

“I’m sure they’re going to decentralize their sequencer, giving up sub-second block times and MEV revenue, and get to L2 Stage 2 as soon as possible. The unfragmented, harmonized rollup-centric roadmap is coming together exactly as planned!” crypto entrepreneur Matt Henderson wrote in an X post (formerly Twitter). 

Several major crypto exchanges have developed their own blockchains, following the success of Binance, the largest digital-asset exchange. Binance’s BNB Chain and its associated token have gained significant traction globally. 

Coinbase’s entry into the space with Base has also proven effective, with the platform achieving 300% growth in transactions during the second quarter. Unlike its competitors, Kraken has no plans to release a native token, as Koller noted.

Currently, a team of around 40 employees is working on Ink. The exchange is also organizing developer-focused events, including a presence at Devcon in Thailand.

In addition to INK, Kraken has also made several major announcements throughout the week. The platform is also launching a Bitcoin-backed asset called ‘KBTC,’ which can be traded natively on the Ethereum network. 

Regulatory Battle with the SEC continues

On a regulatory front, the exchange is pushing back against the SEC over claims that certain digital assets offered by the exchange qualify as unregistered securities. The SEC accused Kraken of violating federal securities laws, citing assets such as ADA, ALGO, and SOL. 

Read More: Crypto Regulation: What Are the Benefits and Drawbacks?

Kraken disputes this, stating that these assets do not meet the legal criteria for securities under U.S. law and accusing the SEC of overreaching with unclear guidelines.

The exchange has requested a jury trial, alleging that the SEC has consistently blocked its attempts to register or cooperate by issuing contradictory rulings and guidance. Kraken also recently delisted Monero (XMR) from its European market over regulatory changes. 

Bittensor (TAO), one of the leading artificial intelligence coins in the market, is currently showing signs of consolidation. Market indicators suggest indecision, with neither buyers nor sellers taking firm control.

TAO’s movement appears range-bound, lacking clear momentum to either break higher or fall significantly lower. The EMA lines suggest the possibility of a “death cross,” which could spark a significant correction if the market loses momentum further.

TAO Ichimoku Cloud Shows Consolidation

The Ichimoku Cloud chart for TAO shows a mixed picture of the current market conditions. The price is currently trading near the cloud, suggesting indecision.

The cloud itself (Kumo) is mostly flat and has both green and red areas, indicating an overall neutral trend. The price recently tried to break above the cloud, but failed to gain significant upward momentum, indicating resistance.

Read more: How To Invest in Artificial Intelligence (AI) Cryptocurrencies?

The Tenkan-sen (Conversion Line) and Kijun-sen (Base Line) intersect near the current price, suggesting the market is looking for direction. The leading span A and leading span B, which form the cloud, are not diverging sharply, pointing to potential range-bound movement.

If TAO, which is the biggest artificial intelligence coin in the market today, can break decisively above the cloud, it could indicate a bullish shift. Conversely, a fall below the lower cloud boundary would suggest a bearish trend. At the moment, the market appears hesitant, with buyers and sellers evenly matched, leading to sideways movement.

Bittensor RSI Is Back To 50

TAO’s RSI is currently at 50, rising from 31 just a day ago. This swift movement suggests renewed buying pressure, bringing market sentiment to a neutral level.

A jump from oversold conditions to a midpoint like this often implies a shift away from strong bearishness but not necessarily toward bullish dominance yet.

The Relative Strength Index (RSI) measures momentum by indicating whether an asset is overbought or oversold. An RSI of 50 means that the market sentiment for TAO is currently balanced.

At this level, there is no strong bias towards buying or selling, suggesting that the price might consolidate until new catalysts drive momentum in either direction.

TAO Price Prediction: No $700 Level in the Near Term

The TAO price chart shows that the price is currently in a consolidation phase, trading between key support and resistance levels. Resistance lies at $600 and $618, where previous attempts to break above have failed, while the support levels at $503 and $473 are holding for now, providing a cushion against further downside.

The EMA lines also reflect this sideways action, with the short-term EMAs getting closer to the long-term ones, indicating reduced bullish momentum.

Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024

The short-term EMA lines are on the verge of crossing below the long-term EMA lines, which, if confirmed, could form a “death cross.” A death cross typically signals a bearish reversal, implying that downward pressure could intensify and trigger a significant correction.

If TAO price can recover its uptrend, it could test the resistances at $600 and $618 soon. This would mark a potential 12% price surge. However, if the uptrend isn’t strong enough and the trend is reverted, TAO could go as down as $473, marking a 14% price correction.