The Notcoin team burned 210 million $NOT tokens (worth around $3 million) this week.
This token burn, as well as other initiatives, might be highly bullish for Notcoin over the long term.
Notcoin plans to distribute $4.2 million worth of tokens to active users through its "Explore" program.
Notcoin's price broke a descending trendline and is now consolidating above $0.01533.
A rally to $0.03367 or higher is possible if the bullish momentum continues.
Telegram's gaming cryptocurrency, Notcoin, is set for one of the biggest bullish shakeups of the year, with enough juice for a possible 100% move to the upside.
This outlook is based on some interesting developments coming to the Notcoin community and recent reports of a massive token burn this week.
Here are all the details.
This week, the Notcoin team took to Twitter to announce the burn of a staggering 210 million NOT tokens.
These $NOT tokens, worth around $3 million, were burned in less than 24 hours, causing a more than 10% price increase on Notcoin on Wednesday.
At the time of writing, Notcoin had cooled down, but it was observed to have moved by around 16.40% to reach $0.0164 in a matter of hours.
Token burns directly reduce a cryptocurrency's overall supply, leading to price increases and giving the rest of the tokens in circulation a better chance to rally.
So, will $3 million worth of $NOT being removed from supply be enough to cause a substantial price increase?
Moreover, the token burn is only one part of the bullish news surrounding cryptocurrency.
The Notcoin team also announced plans to distribute around $4.2 million worth of NOT tokens to its Explore initiative's "Gold and Platinum users".
Any project can now participate in this initiative by adding NOT to the Explore pool and designing tasks for users to perform in exchange for some NOT tokens. By doing so, Notcoin aims to encourage a more engaged community by offering incentives and rewards for participation.
Moreover, some ongoing work is also being done on the Notcoin app, which offers users rewards for playing new Telegram games.
The idea is to make the app the centre of attention for starting new ecosystem projects, increasing demand for Notcoin and helping the community burn more tokens.
According to the charts, the token burns from last week allowed the cryptocurrency to break above the descending trendline shown below for the first time this month.
Notcoin’s price action
Notcoin is now consolidating on top of this descending trendline and has found its footing above the $0.01533 price level.
So where to from here?
We have the RSI on the Notcoin hourly chart approaching the neutral zone, indicating a more even degree of control over things between the bulls and bears.
If things play out well, we are bound to see the cryptocurrency rebound from this $0.01533 price level, with the Fibonacci retracement tool indicating a possible rally to $0.03367 or even higher.
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