ATOM shed 11.7% in four days — Here’s why the prognosis isn’t good for buyers

Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.

• ATOM flipped its market construction bearishly after the drop beneath $7.17
• The retest of $7 as resistance painted a dismal short-term image for the bulls

Cosmos [ATOM] introduced that IBC was coming to the Binance Good Chain. This enlargement is predicted to supply extra alternatives for ATOM to be staked in sensible contracts. Whereas this announcement was adopted by an 8% transfer greater, these positive aspects have been worn out since.

Learn Cosmos’ [ATOM] Value Prediction 2023-24

A earlier ATOM evaluation from AMBCrypto highlighted that the $7 stage was an essential assist stage. The previous week noticed this stage yield a >10% rally, however the bears have succeeded in breaching it. What can merchants plan for ATOM for the subsequent week?

The robust bearish intent meant a transfer towards September lows was doable

Supply: ATOM/USDT on TradingView

ATOM worn out all its previous week’s positive aspects after which some. The Fibonacci ranges (pale yellow) confirmed {that a} four-hour buying and selling session closed beneath $6.866, which was 26 September’s low. The drop beneath 78.6% retracement meant ATOM was seemingly headed additional south.

The 23.6% and 61.8% extension ranges at $6.67 and $6.37 could possibly be locations the place bulls attempt to put up a struggle. The Relative Energy Index’s (RSI) studying of 36 meant momentum was firmly bearish. So was the market construction.

The low at $6.28 represented the September month’s low and was in proximity to the $6.37 extension stage. Therefore, a drop beneath $6.67 could be more likely to fall to the $6.28-$6.37 area earlier than the bulls can come to the rescue.

The market sentiment mirrored intense bearishness in latest days

Supply: Coinalyze

On 4 October, the Open Curiosity (OI) rose barely as ATOM costs fell from $7 to $6.93. This highlighted brief sellers have been within the majority and have been prepared to brief the token’s breakdown beneath the $7 stage.

How a lot are 1, 10, or 100 ATOM value at this time?

The sentiment hasn’t shifted bullish but. Additional, the spot Cumulative Quantity Delta (CVD) highlighted hassle was brewing for bulls. The dearth of an uptick within the CVD meant the battle was one-sided. Consumers lacked any say available in the market, highlighting the robust risk of continued losses for ATOM.