ATOM flags bearish warning: Will prices hit $9?
- ATOM might drop as little as $9 because the 2024 trip begins.
- Merchants ought to be careful for the funding fee for a shopping for alternative.
Cosmos [ATOM] has began erasing the beneficial properties it had within the final 30 days, and in response to analyst Ali Martinez, extra may very well be on the way in which.
His evaluation confirmed that ATOM might begin the brand new yr by correcting to $9. Martinez’s put up on X confirmed that he used the Tom DeMark (TD) Sequential to reach at his conclusion.
The TD Sequential has flashed a promote sign on #Cosmos 3-day chart! This indicator suggests a potential value correction may very well be on the horizon, probably driving $ATOM down in the direction of $10, and even as little as $9. pic.twitter.com/FwvXLL6RBp
— Ali (@ali_charts) December 31, 2023
Contributors withdraw curiosity
The TD Sequential signifies the time of exhaustion of a development and potential value reversal. So, the prediction recommended that patrons concerned in pushing the token to $12.25 on the twenty sixth of December have been out of the market.
At press time, ATOM’s value was $10.58, representing a 6.38% lower within the final seven days.
A number of days again, AMBCrypto reported a surge within the ATOM value. In that article, we additionally highlighted how the Comsos community exercise has been spectacular.
Whereas that article was a booster for ATOM holders, the identical can’t be mentioned of this latest prediction.
This led AMBCrypto to examine the volume during the last week. In response to our evaluation of Santiment’s on-chain knowledge, ATOM’s quantity had decreased.
As of this writing, the amount was 129.8 million. This was a notable drawdown from the quantity on the twenty sixth of December.
At the moment, the amount was 479.75 million. The quantity reveals the quantity of cryptocurrency merchants over a given interval. Subsequently, the lower was a testomony to the preliminary notion that patrons had withdrawn their curiosity in ATOM.
Drained patrons put bears on the wheel
From a technical viewpoint, the cryptocurrency’s momentum was neck-deep within the bearish zone. This assertion was confirmed by the Shifting Common Convergence Divergence (MACD).
At press time, the MACD was -0.020. Unfavorable values of this indicator recommend rising downward momentum.
So, Martinez’s prediction that ATOM may drop under $10 may very well be legitimate. One other indicator supporting the bias is Aroon. As of this writing, the Aroon Down (blue) was 85.71%.
The Aroon Up (orange), however, was 7.14%. This crossover implies that the downtrend may proceed within the quick time period.
Regardless of the bearish potential, ATOM’s Funding Rate remained within the constructive area at 0.039%. This recommended that merchants have been bullish on the value motion at press time. So, extra longs are paying a funding charge to shorts.
Learn Cosmos’ [ATOM] Worth Prediction 2023-2024
Nonetheless, excessive funding when the ATOM value is lowering shouldn’t be a superb entry signal.
So, merchants on the sidelines might must be careful when the Funding Fee flips destructive. One other alternative may be the interval when ATOM reverses to the upside after the potential decline.