- ATOM could drop as little as $9 because the 2024 experience begins.
- Merchants ought to be careful for the funding price for a shopping for alternative.
Cosmos [ATOM] has began erasing the positive aspects it had within the final 30 days, and in accordance with analyst Ali Martinez, extra might be on the best way.
His evaluation confirmed that ATOM might begin the brand new 12 months by correcting to $9. Martinez’s submit on X confirmed that he used the Tom DeMark (TD) Sequential to reach at his conclusion.
The TD Sequential has flashed a promote sign on #Cosmos 3-day chart! This indicator suggests a potential worth correction might be on the horizon, probably driving $ATOM down in the direction of $10, and even as little as $9. pic.twitter.com/FwvXLL6RBp
— Ali (@ali_charts) December 31, 2023
Contributors withdraw curiosity
The TD Sequential signifies the time of exhaustion of a pattern and potential worth reversal. So, the prediction urged that patrons concerned in pushing the token to $12.25 on the twenty sixth of December have been out of the market.
At press time, ATOM’s worth was $10.58, representing a 6.38% lower within the final seven days.
A number of days again, AMBCrypto reported a surge within the ATOM worth. In that article, we additionally highlighted how the Comsos community exercise has been spectacular.
Whereas that article was a booster for ATOM holders, the identical can’t be stated of this latest prediction.
This led AMBCrypto to examine the volume during the last week. In keeping with our evaluation of Santiment’s on-chain information, ATOM’s quantity had decreased.
As of this writing, the amount was 129.8 million. This was a notable drawdown from the quantity on the twenty sixth of December.
Supply: Santiment
At the moment, the amount was 479.75 million. The amount exhibits the quantity of cryptocurrency merchants over a given interval. Subsequently, the lower was a testomony to the preliminary notion that patrons had withdrawn their curiosity in ATOM.
Drained patrons put bears on the wheel
From a technical standpoint, the cryptocurrency’s momentum was neck-deep within the bearish zone. This assertion was confirmed by the Shifting Common Convergence Divergence (MACD).
At press time, the MACD was -0.020. Detrimental values of this indicator recommend rising downward momentum.
So, Martinez’s prediction that ATOM may drop beneath $10 might be legitimate. One other indicator supporting the bias is Aroon. As of this writing, the Aroon Down (blue) was 85.71%.
The Aroon Up (orange), however, was 7.14%. This crossover implies that the downtrend may proceed within the brief time period.
Supply: TradingView
Regardless of the bearish potential, ATOM’s Funding Rate remained within the constructive area at 0.039%. This urged that merchants have been bullish on the value motion at press time. So, extra longs are paying a funding price to shorts.
Learn Cosmos’ [ATOM] Worth Prediction 2023-2024
Nevertheless, excessive funding when the ATOM worth is lowering is just not a superb entry signal.
So, merchants on the sidelines could have to be careful when the Funding Fee flips unfavorable. One other alternative may be the interval when ATOM reverses to the upside after the potential decline.
Supply: Santiment