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ATOM traders have every reason to stay cautious despite these promising updates

2min Read
Cosmos’ recent bull rally might end soon as suggested by this.. 

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  • At the time of writing, ATOM’s RSI was in an overbought position
  • Additionally, its MFI and funding rates looked bearish too

Cosmos Daily, a popular Twitter handle that posts updates related to the Cosmos ecosystem,  revealed an update about the ecosystem. The Cosmos [ATOM] was the most traded Cosmos IBC token in the last seven days. Apart from ATOM, LUNC and FET made it to the top three. 

Over the past seven days, not only did ATOM gain popularity, it also managed to make its investors happy by registering massive gains of nearly 14%. According to CoinMarketCap, ATOM’s price increased by 11% in the last 24 hours.

At press time, it was trading at $11.29 with a market capitalization of more than $3.2 billion. However, the good days might soon come to an end as CryptoQuant’s data revealed an update that was siding the bears. 


Read Cosmos’ [ATOM] Price Prediction 2023-24


Is a trend reversal inevitable? 

As per CryptoQuant, ATOM’s Relative Strength Index (RSI) was in an overbought position. This could initiate a sell off in the days to come. As a result, there is a chance of a trend reversal in the coming days.

ATOM’s daily chart also revealed a few more indicators that aligned with the sellers’ interest. For instance, the Money Flow Index (MFI) was resting in the overbought zone as well. This would further increase the chances of a downtrend.

However, the On Balance Volume (OBV) and the Moving Average Convergence Divergence (MACD) looked bullish for ATOM. The Exponential Moving Average (EMA) Ribbon displayed a bullish crossover, which might play a key role in sustaining the price surge. 

Source: TradingView


How many ATOMs can you get for $1?


This is what metrics suggest

Upon considering ATOM’s metrics, the outlook seemed extremely bearish, as most of them suggested that the tables would soon turn against ATOM. The Binance and DyDx funding rates registered downticks, which was negative as it represented less demand in the derivatives market.

However, ATOM’s social volume remained relatively high over the last week, reflecting its popularity. 

Source: Santiment

Moreover, Caleb Franzen, an analyst, recently mentioned in a tweet that if crypto can sustain upside momentum, ATOM might have some of the strongest upside until it reaches its proven resistance. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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