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Because the world waits to see whether or not the crypto market will get away of its fortnight vary, ATOM’s value motion is already favoring the bears. It has achieved a big draw back to date this week and is at the moment headed for a retest of a key structural help degree.
ATOM traded at $9.77 at press time, after tanking by 8.85% within the final 24 hours and roughly 8% within the final seven days. Its present value degree appears to be buying and selling inside structural help territory close to the $9 value degree. This is a vital help vary as a result of it held effectively over the last bearish drop within the second week of Could.
The precise value degree offered help over the last bear run in June and July. The value bounced again a number of occasions from the identical help vary. The same retest occurred a number of hours earlier than this press, however the actual query is whether or not the identical help degree will end in an identical bounce-back.
Supply: TradingView
Regardless of the bearish value motion, ATOM’s RSI remains to be hovering above oversold territory. A dip beneath help would doubtless create a lower-low to higher-high setup between the value and RSI, therefore a bullish signal. The MFI means that traders have been aggressively accumulating ATOM as the value drops.
Supply: TradingView
What can we be taught from ATOM’s on-chain metrics?
So far as on-chain metrics are involved, each the Binance and FTX funding charges demonstrated indicators of weak spot within the final two days. This means decrease curiosity from the derivatives market, an indication that traders turned extra cautious.
ATOM’s on-chain quantity dropped considerably throughout the identical interval. Regardless of the above observations, the whale promoting strain died down in the previous few days. The availability held by whales appears to have bottomed out throughout the weekend and even registered some uptick. This statement may level in direction of a better likelihood that the $9 help degree will keep off the bears.
Supply: Santiment
Conclusion
Present knowledge suggests a big likelihood that ATOM’s structural help will maintain sturdy. In that case, we would see a big bounce-back close to the $9 value vary. Nevertheless, the market remains to be susceptible to unprecedented modifications within the information few days. Which means that there’s nonetheless important threat that ATOM may break help and search extra draw back, therefore traders ought to tread cautiously.
