well define by the person above, No follow links are also having value they use to drive traffic to the website and looks natural in eyes of Search Engines.
If your Domain is new so it may be a Google dance. Please also tell have you lost traffic? If yes then you are caught by penguin for doing excessive link building.
There are several reason but most important is your Robots.txt file having some problem. Go to the webmaster tool and Get the information and Check the parameters of Robots.txt file.
It will properly guide you to remove your issue.
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