ATOM hits another year low: Can sellers extend gains?
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Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
- ATOM crashed to a different year-low of $6.6.
- Damaging funding charges together with dipping Open Curiosity may result in additional losses.
Cosmos [ATOM] hit a brand new low of $6.6, as sellers prolonged their bearish dominance by breaking under the important $7 help degree. The $7 help degree had rebuffed the bearish swing in June however the promoting stress in late August triggered the bullish protection of the extent to cave.
Learn Cosmos’ [ATOM] Worth Prediction 2023-24
Bulls overwhelmed by promoting stress
Supply: ATOM/USDT on Buying and selling View
The bearish momentum on ATOM’s value chart started in Q1 2023. The massive dip from the $15 value degree was briefly resisted by bulls on the $10 help degree. Nonetheless, the break of the earlier bullish run’s greater low in early June unleashed an enormous wave of promoting stress.
This sunk ATOM to a year-low of $7 earlier than a fast restoration. Regardless of the pullback, the bearishness persevered in Q3 and resulted in new lows for ATOM.
Whereas bulls regarded to rebound, the indications didn’t look favorable. The Relative Power Index (RSI) remained across the oversold zone to focus on an absence of shopping for stress. However, the On Stability Quantity (OBV) registered respectable buying and selling quantity, though it additionally dipped barely in September.
A retest of the brand new resistance at $7 may see ATOM sink decrease towards $6 to $6.5. These value ranges additionally function a help degree on the weekly timeframe. On the flip aspect, a bullish reversal will want patrons to scale the current hurdle at $7 earlier than embarking on an honest rally.
Declining Open Curiosity hinted at extra losses
Supply: Coinalyze
How a lot are 1,10,100 ATOMs price right this moment?
The sharp drop of the Open Curiosity on the decrease timeframes hinted at extra losses for ATOM. In accordance with Coinalyze, the OI dropped by over $1 million, as costs continued to dip.
This pointed to an extension of the bearish momentum within the mid-term. Equally, the Funding Price remained in unfavorable territory, as patrons continued to be worn out.
