Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- The day by day timeframe was bearish
- A transfer above $13 seemed unlikely and would give impetus to the bulls
Cosmos has been in a downtrend since late September. Due to this fact, merchants trying to commerce with the development can take a look at the upper timeframe. On the short-term value charts, the previous couple of days noticed a bounce from the $11 degree.
Right here’s AMBCrypto’s Value Prediction for Cosmos [ATOM] for 2022-2023
In different information, 17 new projects had been added to the Cosmos ecosystem. Might ATOM drive a break in its bearish larger timeframe construction on the again of such current constructive information?
Brief-sellers rub their arms in anticipation of a $12.5 revisit
![Cosmos in a bearish trend, a revisit to this region can offer a selling opportunity](https://statics.ambcrypto.com/wp-content/uploads/2022/10/PP-3-ATOM-price.png)
Supply: TradingView
On the day by day timeframe, the sequence of decrease highs since mid-September meant the construction was bearish. The technical indicators additionally confirmed a impartial to bearish inclination. The Relative Energy Index (RSI) was beneath impartial 50 on the 12-hour chart, nevertheless it hasn’t dropped under 40 previously week. This confirmed that momentum was not strongly bearish. The On-Stability Quantity (OBV) additionally moved between two ranges of assist and resistance previously month. A transfer previous both degree might pave the best way for the subsequent robust transfer as nicely.
The value motion, as highlighted, favored the sellers on the day by day and 12-hour timeframes. A set of Fibonacci retracement ranges (yellow) confirmed the $13 mark to be the 38.2% retracement degree. The 23.6% extension degree lay at $9. A bearish order block was witnessed on the $12.6, close to this $13 key degree.
Therefore, a short-term rally into this area over the approaching days might be a set off for short-sellers to hunt promoting alternatives.
Growth exercise lowered, social dominance unable to breach native highs
![Cosmos in a bearish trend, a revisit to this region can offer a selling opportunity](https://statics.ambcrypto.com/wp-content/uploads/2022/10/PP-3-ATOM-santiment.png)
Supply: Santiment
The event exercise was robust in early to mid-October nevertheless it tailed off lately The social dominance metric additionally confronted a ceiling at 0.72%. This was a roof that the metric had failed to interrupt previous even through the rally in early September from $11.7 to $16.7.
A revisit to the $12.6 space can be utilized to enter quick positions. Invalidation of this concept could be a session shut above the bearish order block. To the south, the $10.53 and $9 ranges can be utilized to take revenue by the bears.