What to expect as ATOM weakens further
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.
- ATOM closed beneath the 38.2% Fib stage ($8.5) on the every day chart.
- Open Curiosity surged as sellers took extra open brief positions.
Bitcoin [BTC] misplaced maintain of the $29.5k range-low after a reasonable July CPI knowledge launch on 10 August. The drop tipped bears to place for extra positive aspects, with most altcoins like Cosmos [ATOM] possible losses over the weekend until BTC reclaims $29.5k and goals on the mid-range of $30.4k.
How a lot are 1,10,100 ATOMs value in the present day?
Within the meantime, ATOM printed a every day candlestick shut beneath the essential stage of 38.2% Fib stage ($8.5) on 10 August. It signifies rising bear leverage, which may complicate issues for bulls.
Will ATOM flip 38.2% Fib stage to resistance?
Supply: ATOM/USDT on TradingView
The regular drop from mid-July $10 to $8 at press time uncovered ATOM to shed over 15% of its worth. However the bearish strain appears removed from over after bulls did not cease the drop on the 38.2% Fib stage ($8.5).
For perspective, the Fibonacci retracement software (yellow) was plotted between June highs and June lows. Primarily based on the software, the 50% Fib stage ($8.9) was essential in June and July. Nonetheless, it cracked in August, forcing the bulls to regroup on the subsequent assist – 38.2% Fib stage ($8.5).
The 38.2% Fib stage has proven weak spot after the every day candlestick closed beneath it on 10 August. If sellers flip the extent to resistance, ATOM may drop additional to 23.6% Fib stage ($7.9) – a foray into June lows.
The Chaikin Cash Stream struggled to cross above zero, demonstrating muted capital inflows in the previous few days. The retreating Relative Power Index additional confirmed the shortage of demand and sellers’ conviction.
Open Rates of interest surge
Supply: Coinalyze
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Open Rates of interest, which observe the variety of open contracts within the futures markets, surged from 10 August, rising from <$70 million to $73.5 million on the time of writing. Nonetheless, worth motion dipped decrease amidst rising Open Curiosity. The divergence factors to sellers opening new positions to brief the asset.
Nonetheless, the CVD (Cumulative Quantity Delta), which tracks whether or not patrons or sellers are in management, retreated barely and moved sideways. It reveals sellers have had little management over the previous few days, however the facet motion requires warning.
