Analysis
Cosmos: One last hurdle to clear before reclaiming June high
Cosmos’ uptrend was solid, but it approached a key bearish area which could derail bulls from crossing $10.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- ATOM’s recovery was approaching a bearish OB.
- Trading volumes and development activity eased.
Cosmos [ATOM] is fixated on reclaiming the $10 psychological level. But some fundamental and technical indicators were out-of-sync, casting doubts over short-term capacity to exceed $10.
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In the meantime, Bitcoin [BTC] continues to fluctuate between $29.5k and $31.4k, with $30.8k being a key faltering line for bulls in the past few days.
Can bulls invalidate this bearish OB?
Source: ATOM/USDT on TradingView
Since the massive slump on 10 June, ATOM rebounded and has been steadily making higher lows and highs on the 4-hour chart – uptrend. At the time of writing, the pullback retested at $8.93, and the range-low saw it bounce back and clear the previous high near $9.63. The move flipped the H4 structure to bullish.
Bulls will need to worry about the range-high of the ascending channel near $10.1. The range-high aligns with a bearish order block (OB) of $10.1 – $10.28 (red) formed on 6 June on the 4-hour chart. Collectively, it could make the area a bearish stronghold unless bulls invalidate it by swinging to $10.5.
However, sellers could gain entry at the bearish OB if bulls falter in the area. In such a scenario, sellers could extend gains to the mid-range ($9.6) or range-low ($9).
The RSI hit the overbought zone while the OBV edged higher, denoting increased buying pressure and demand in the past few days.
Volumes eased; Development activity flattened
Source: Santiment
According to Santiment, ATOM’s volume peaked at 123 million after the price hit $9.2 on 30 June. After that, volume eased to about 67 million at the time of writing. This was a considerable drop which means buying pressure eased despite the rally.
How much are 1,10,100 ATOMs worth today?
The development activity flattened out in the same period, which could spook long-term investors’ confidence. Besides, the funding rates flashed red at the time of writing, reinforcing further headaches for near-term bulls.
Bulls could wait for a pullback retest on the mid-range or the range-low for re-entry if ATOM falters at the bearish OB.
