Connect with us
Active Currencies 14284
Market Cap $2,526,813,413,354.10
Bitcoin Share 51.72%
24h Market Cap Change $0.50

Cosmos [ATOM] retests $8.7 but should bulls be hopeful of recovery?

2min Read
Cosmos [ATOM] retests $8.7 but should bulls be hopeful of recovery?

Share this article

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

  • Cosmos [ATOM] lost almost 80% of its value between April to early June
  • ATOM’s OI showed no signs of recovery 

Bitcoin [BTC] continued to hold on to the $16.6k support level. Trading volume has been low over the past two weeks. Bitcoin faces resistance at the $17k, $17.3k, and $17.8k levels. Even if these were beaten, the higher timeframe bias would remain bearish.


How many ATOMs can you get for $1?


Cosmos [ATOM], on the other hand, saw a large move upward initiated in June. Yet, even these gains came after the asset lost 80% of its value from April to early June. Therefore, long-term investors must temper their bullish expectations.

The 78.6% retracement level is a must-hold level for longer-term bulls

Cosmos [ATOM] retests $8.7 but should bulls be hopeful of recovery?

Source: ATOM/USDT on TradingView

In June and July, Cosmos initiated a higher timeframe market structure break toward the bullish side. The move upward from $5.5 to $17.19 in mid-2022 represented gains of 210%. When the $10-$10.8 area was flipped to support, it signaled strong bullish intent.

In recent months, the trend has been bearish, and the move beneath $11.37 in early November saw bears seize control of the market. The  61.8% and 78.6% Fibonacci retracement levels at $10 and $8.04 are important levels of support. One of them has already been decisively broken, and longer-term investors will have an eye on $8.

The Relative Strength Index (RSI) remained below neutral 50 since November to show bearish momentum. The Chaikin Money Flow (CMF) also dropped below -0.05 in December to show heavy selling pressure. The 21 and 55-period moving averages formed a bearish crossover in mid-November to reinforce the idea of seller dominance.

In the coming weeks, a move below $8 could herald a large drop to follow. On the other hand, a move back above the $10-$10.8 area is necessary for bullish conviction to creep back into the market.

Funding rate and CVD highlight persistent selling pressure

Cosmos [ATOM] retests $8.7 but should bulls be hopeful of recovery?

Source: Coinalyze

In the past ten days, the Open Interest saw a weak ascent alongside the price. However, recent hours of trading saw a wave of selling push ATOM lower from $9.4 to $8.97, which saw the Open Interest decline as well. This outlined bearish sentiment on lower timeframes behind Cosmos.


A 118.23x hike on the charts IF ATOM hits Bitcoin’s market cap?


The Cumulative Volume Delta has also been in a strong downtrend throughout December, and the funding rate was also negative in the past ten days. Unsurprisingly, the inference yet again was seller dominance.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.