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zkSync, Notcoin, and Bitgert Prices Continue to Dip as Altcoin Market Shows Danger Signs

Last Updated June 20, 2024 11:13 AM
Teuta Franjkovic
Last Updated June 20, 2024 11:13 AM

Key Takeaways

  • The prices of Notcoin (NOT), Bitgert (BRISE), and zkSync (ZK) tokens experienced significant declines in recent days.
  • Despite the recent decline, NOT has seen a remarkable surge of 185% over the past month.
  • ZK token holders have sold a significant portion of their airdrop allocation, leading to a price drop and increased trading volume.

The recent downturn in the cryptocurrency market has significantly affected the prices of Notcoin (NOT), Bitgert (BRISE), and zkSync (ZK) tokens.

During the last seven days, BRISE  was down by almost 10%, NOT  has dropped almost 11% in value, and perios, ZK also experienced a decline , falling 25% to a present price of $0.2158.

These changes coincide with a modest 3% reduction in Bitcoin’s value , which continues to stay above the $65,600 support level.

NOT Price Correction After Massive Surge: Analysts Remain Bullish

In spite of a recent downturn, NOT has experienced a remarkable surge of 185% over the past month, positioning it as one of the standout performers in the cryptocurrency market. From a peak of $0.021, NOT’s price dropped to its current level of $0,16 during a significant three-day sell-off, according to CoinMarketCap data. 

NOT price
Credit: CoinMarketCap

This decline, along with a 6.26% decrease in trading volume, reduced NOT’s market capitalization to $1.64 billion, pushing it just outside the top 50 cryptocurrencies. Currently, NOT trades 45% below its high of $0.02896, which was reached 16 days ago following its listing on Binance. 

Conversely, the Relative Strength Index (RSI)  stands at 51.43, indicating sustained buying interest and maintaining a bullish outlook for NOT on the RSI spectrum. This correction is in line with analyst predictions following the cryptocurrency’s rapid increase in value.

In the mean time, W3Vibes, a user on the X, attributed the price decline  to investors unloading their stakes after a month. W3Vibes pointed out that despite the sell-off, the manageable selling pressure and previously observed strong buying volumes suggest that the market could still display resilience and bounce back.

BRISE Community Driving Bullish Outlook Despite Price Decline

The strong and vocal community behind Bitgert is a significant asset, providing unwavering support and constant engagement that generates positive momentum for the project. Additionally, the Bitgert team’s commitment to ongoing development, consistently rolling out new features and updates, bolsters confidence in the project’s future.

The community will be hoping that this will help BRISE price rise since, in the last month, the price was down over 17% .

BRISE price
Credit: CoinMarketCap

However, the vibrant community has contributed to the success of Bitgert’s BRISE coin in the market. A notable 61% of BRISE’s supply has been burned , thanks to the token’s deflationary mechanism, yet investment in the token continues to grow daily. The market performance of BRISE indicates a promising upward trajectory. Its Relative Strength Index (RSI) is nearing 50 , suggesting a potential price increase. Moreover, indicators such as the Moving Average Convergence Divergence (MACD), trading volume, and moving average all point to a bullish outlook for the currency.

zkSync Price Plunges as Top Wallet Holders Dump Airdrop Allocations

The zkSync token has seen a substantial decline , largely due to many top wallet holders selling their newly received tokens soon after the airdrop on Monday, June 17. According to blockchain analytics firm Nansen , 41.1% of the tracked addresses sold their entire airdrop allocation, while 30.3% sold at least part of their tokens. Together, these groups sold over 497 million ZK tokens.

ZKSync price
Credit: CoinMarketPrice

Despite the significant sell-off, approximately 28.5% of the top recipients have chosen to retain their ZK tokens. This selling and holding pattern has led to a dramatic increase in the 24-hour trading volume of the token, which then surged by 125.48% to roughly $1,021,708,204. Still, looking at the monthly level, the token was down by 25,20% holding the current price  of $0,214.

Furthermore, the zkSync token has a total supply of 21 billion, with a fully diluted market value exceeding $4.224 billion. However, only 17.5% of this supply is currently circulating, bringing the intraday market capitalization to about $738 million, down from its peak of over $1.1 billion shortly after its initial release.

Fed Maintains High Interest Rates as Crypto Market Interest Wanes

On the macroeconomic front, the Federal Reserve has emphasized that it will not rush to cut interest rates. During its recent monetary policy announcement, the Fed decided to keep interest rates steady and indicated a patient approach due to persistently high inflation.

At the same time, interest in the cryptocurrency industry appears to have diminished over recent months. Data from CoinMarketCap indicates that the daily trading volume of coins on exchanges has significantly decreased since reaching a peak in March. Additionally, open interest in the futures market has not shown signs of growth either.

Trade volume
Credit: CoinMarketCap

No Altcoin Season YET

Cryptocurrency analyst Benjamin Cowen provides  important insights, suggesting that an altcoin bull run hinges on Federal Reserve rate cuts. Historical data supports the view that altcoins generally perform better after the Fed reduces interest rates.

Cowen explains that many altcoins are currently on the decline, outnumbering those that are rising, which is why the advance/decline index is falling again. This index also dropped just before the Fed’s rate cut in 2019, plummeting rapidly before the Fed initiated cuts in July. He emphasizes the importance of this pattern, noting that despite ongoing calls for an altcoin season, such a phase did not occur in the last cycle until after the Fed had lowered rates.

Recent data from meme stock  analyst @MustStopMurad indicates a significant decline in US household cumulative excess savings. In July 2021, these savings reached a peak of $1,868 billion. Since that high point, the amount has drastically decreased, with projections suggesting it could drop to -$1,832 billion by mid-2024.

As savings diminish, the overall financial environment tightens, affecting all markets, including cryptocurrencies. The sharp decline in US household savings indicates Americans have less disposable income for speculative investments such as cryptocurrencies. This reduction in available funds could potentially delay the altcoin season anticipated in 2024.

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