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Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
Cosmos’ funding price was strongly adverse, in keeping with the 1-Day Funding Rate knowledge on Coinglass. This meant that quick positions paid the lengthy positions periodically, and confirmed speculators have been bearishly positioned over the day past.
Certainly, a fall from $14.6 to $13.5 was seen, earlier than a bounce to $14. A more in-depth inspection of the worth charts confirmed a bearish transfer over the previous week.
ATOM- 12-Hour Chart
Supply: ATOM/USDT on TradingView
ATOM took a 20% hit from the $16.5 mark to achieve a vital zone of help at $13 over the previous week. Highlighted in cyan, this zone of liquidity has been essential since mid-August. It acted as resistance as much as early September and was decisively damaged.
The buying and selling quantity has additionally been sizeable in September. Over the following few days, a retest of the help zone may supply a shopping for alternative. But, it should be remembered that Bitcoin has a bearish bias till the $19.6k mark could be damaged.
The truth that the $13.87 low from mid-September was damaged meant the market has a bearish bias on the upper timeframe. A every day session shut beneath $12.85-$13 would counsel one other plunge towards the $11.67 mark.
The Fibonacci retracement ranges (yellow) confirmed the 61.8% stage to lie at $12.85. This stage had confluence with the help zone, additional reinforcing its significance.
Rationale
Supply: ATOM/USDT on TradingView
The Relative Energy Index (RSI) slipped beneath impartial 50 and hinted at a flip in momentum towards bearish. In distinction, the On-Stability Quantity (OBV) was on an uptrend to indicate robust shopping for quantity in current weeks. The Chaikin Cash Circulation (CMF) additionally fell towards the impartial zone.
The inference from the symptoms was a combined bunch, with bearish momentum however with out heavy promoting quantity.
Conclusion
The autumn to the help zone at $13 meant merchants and traders might need a shopping for alternative on their palms. A every day session shut beneath $12.85 would point out ATOM was headed towards the $11.6 mark. A profitable protection of the $13 area over the following week may begin ATOM on a transfer again towards the $16.6 highs. Persistence and low-risk positions could possibly be the best way to navigate the Cosmos charts.
