Cosmos [ATOM] bulls fail to defend $10.6, here’s where prices can go by June
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure has been bearish since late April.
- The recent drop below $10.65 highlighted massive strength from the sellers.
The launch of the first Consumer Chain was likely to see more utility for the Cosmos network. It shored up investor confidence by assuring them that the project remained growth-oriented. Yet it was not enough to hold the ATOM downtrend at bay.
Read Cosmos’ [ATOM] Price Prediction 2023-24
The higher timeframe price action highlighted bearishness. The indicators showed downward momentum was on the rise and the Cosmos native token was likely to see further losses in May and June.
ATOM slips beneath critical support zone from MarchBoth the 12-hour and the daily timeframes highlighted the local bottom formed on 9 March was significant, as ATOM could rally from this support zone to reach $13.49 on 14 March. Thus, there was a 29.4% gain within a week, showing strong demand.
Since then, the bullish order block at the $10.65 level (cyan) has been respected. However, it did not yield as strong a reaction as the first time, which was expected. Generally, the retests of an order block after the first one are weaker, and this was true in this case.
ATOM bulls were unable to drive prices past $13 once more, and in April, bullish exhaustion was beginning to set in again. This saw ATOM register a lower high at $11.95, before slumping beneath the bullish OB.
How much are 1,10,100 ATOMs worth today?
Therefore, it was a bearish breaker, and a retest of the same is likely to see a bearish reaction. To the south, the next levels of support to watch out for are $9.97 and $9.45.
Selling pressure intensified over the last week, and sentiment was bearishThe 2-hour chart from Coinalyze showed that the spot CVD was in a slow decline throughout May. On 8 May, the selling pressure was ramped up and the CVD quickly slid downward. Meanwhile, Open Interest showed some increase alongside falling prices.
This was a strong sign that speculators were shorting the asset, evidenced by bearish conviction among market participants on the lower timeframes.