Cosmos [ATOM]: Bulls can bid here if the range-low cracks

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• ATOM dropped to a range-low of $8.98 and shelled it. 
• The funding rates wavered while Open Interest rates dipped.

There was heightened bearish pressure on 24 July, ahead of the US Fed rate decision on 25 and 26 July. At the time of writing, Bitcoin [BTC] hit $29.0k, confirming potential further losses should the US FOMC meeting takes a hawkish stance. Over the same period,

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Bulls can consider lower supports

Source: ATOM/USDT on TradingView

Like BTC, ATOM has been in a range formation in the past few days. It oscillated between a range-high which doubled as a bearish order block ($9.80 – $10.3), red, and the range-low of $8.98. 

However, sellers seemed interested in seeking more gains at the time of writing. If BTC drops below $29.0k, ATOM sellers could seek more gains and breach the range-low of $8.98. If so, the extended drop could ease at the December low of $8.43. 

The December low coincided with the 38.2% Fib level and H4 bullish order block of $8.3 – $8.5 (white). So, the confluence area could also offer resistance if ATOM to sellers if they breach the range-low.

A likely rebound from the confluence area must deal with range-low before advancing. So, the immediate target for a corrective rebound from the $8.3 – $8.5 zone will be $8.98. 

If so, buying at the bullish OB, targeting the previous range-low, could offer a good risk ratio. But a breach below the H4 bullish OB will invalidate the above thesis.

The Relative Strength Index (RSI) and On Balance Volume (OBV) registered downslopes, suggesting sellers’ leverage. 

Funding rates wavered

Source: Coinalyze

The recent retest of the bearish OB (red) was marked by an uptick in Open Interest (OI) rates. But the price reversal was marked by a steady decline in OI from >$75 million to around $70 million. 

How much are 1,10,100 ATOMs worth today? 

Similarly, the funding rates wavered over the same period, indicating bulls faltered, reinforcing sellers’ edge. So, the key interest levels are the H4 bullish OB of $8.3 – $8.5 and the range-low ($8.98).