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ATOM extends recovery: Are more gains likely?

2min Read

ATOM fronted an impressive recovery in the last few days. But further upside hangs in the balance as BTC struggles to hold $27k.

ATOM extends recovery: Are more gains likely?
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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). 


Is your portfolio green? Check out the ATOM Profit Calculator 


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?

ATOM

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]

Source: Coinalyze

The Open interest rates increased between 15 – 18 September, but wavered afterward. It shows demand surged and fluctuated over the same duration. It could be construed as a neutral bias. 

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.

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Benjamin Njiri is a Crypto Analyst and Journalist at AMBCrypto who specializes in technical analysis and identifying emergent market trends. He excels at breaking down complex chart patterns and on-chain data to make them accessible and actionable for investors. His rigorous analytical approach is founded on his academic background as a Telecommunication Engineering graduate. This discipline has equipped him with an expert understanding of signal processing and data analysis, allowing him to systematically filter market noise from true trend signals with engineering precision. Armed with this unique perspective, Benjamin focuses on providing clear, data-driven insights into the digital asset landscape. His work is dedicated to demystifying the intricate world of cryptocurrencies, empowering readers to understand the forces that shape the market and to navigate it with greater confidence.
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