Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ATOM recovered early September losses and extended recovery.
- Demand wavered in the futures market, but buyers had leverage.
Cosmos [ATOM] had a successful recovery in September. It posted +18% gains after rising from $6.2 to $7.5. However, it has struggled to hold on to the $7.5 level since Monday (18 September).
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Meanwhile, Bitcoin [BTC] struggled to defend the mid-range level of $27k as of press time and could head lower. If so, sellers could prevent ATOM’s price from exceeding $7.5 in the coming days.
Will sellers inflict a reversal?
Source: ATOM/USDT on TradingView
The H12 chart showed ATOM was in an uptrend, making higher highs and higher lows since 11 September. Similarly, the RSI shifted from the low to the upper range, demonstrating that buying pressure surged over the same period.
Similarly, the CMF and OBV recorded upticks, underscoring improved capital inflows and Spot market demand over the same period. These positive readings make an extra bullish scenario likely.
Even so, a BTC’s reversal could drag ATOM’s recovery. In such a scenario, exceeding $7.5 could be challenging. But a reversal could ease at the $7.1 level. It aligns with the 50-EMA (Exponential Moving Average). An extended drop could ease at support zone of $6.8 – $6.9 (red).
However, a convincing reclaim of $7.5, especially if BTC surges beyond $27k, could push ATOM to target $7.895.
Demand wavered and funding rates were negative
![Cosmos [ATOM]](https://ambcrypto.com/wp-content/uploads/2023/09/ATOM-CVD.png.webp)
Source: Coinalyze
However, the funding rates have been negative despite the positive price action in the last few days.
How much are 1,10,100 ATOMs worth today?
The conflicting readings add to the Spot market buyers’ waning leverage, as shown by the positive but retreating CVD (Cumulative Volume Delta).
Hence, traders should track BTC movements for clarity and possible market direction.
