Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- ATOM flipped its market construction bearishly after the drop under $7.17
- The retest of $7 as resistance painted a dark short-term image for the bulls
Cosmos [ATOM] introduced that IBC was coming to the Binance Sensible Chain. This enlargement is anticipated to supply extra alternatives for ATOM to be staked in sensible contracts. Whereas this announcement was adopted by an 8% transfer increased, these positive aspects have been worn out since.
Learn Cosmos’ [ATOM] Value Prediction 2023-24
A earlier ATOM evaluation from AMBCrypto highlighted that the $7 stage was an vital help stage. The previous week noticed this stage yield a >10% rally, however the bears have succeeded in breaching it. What can merchants plan for ATOM for the subsequent week?
The sturdy bearish intent meant a transfer towards September lows was potential
Supply: ATOM/USDT on TradingView
ATOM worn out all its previous week’s positive aspects after which some. The Fibonacci ranges (pale yellow) confirmed {that a} four-hour buying and selling session closed under $6.866, which was 26 September’s low. The drop under 78.6% retracement meant ATOM was possible headed additional south.
The 23.6% and 61.8% extension ranges at $6.67 and $6.37 may very well be locations the place bulls attempt to put up a combat. The Relative Power Index’s (RSI) studying of 36 meant momentum was firmly bearish. So was the market construction.
The low at $6.28 represented the September month’s low and was in proximity to the $6.37 extension stage. Therefore, a drop under $6.67 could be more likely to fall to the $6.28-$6.37 area earlier than the bulls can come to the rescue.
The market sentiment mirrored intense bearishness in latest days
Supply: Coinalyze
On 4 October, the Open Curiosity (OI) rose barely as ATOM costs fell from $7 to $6.93. This highlighted quick sellers had been within the majority and had been keen to quick the token’s breakdown under the $7 stage.
How a lot are 1, 10, or 100 ATOM value at this time?
The sentiment hasn’t shifted bullish but. Additional, the spot Cumulative Quantity Delta (CVD) highlighted hassle was brewing for bulls. The dearth of an uptick within the CVD meant the battle was one-sided. Consumers lacked any say available in the market, highlighting the sturdy risk of continued losses for ATOM.