ATOM witnesses short-term bearish bias, can the buyers reverse the downtrend

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.

• Brief-term vary lows at $12.4 failed to carry
• May a retest of the identical gasoline one other leg downward for ATOM? 

Cosmos [ATOM] was within the grip of a robust downtrend on the value charts. A take a look at the futures market additionally confirmed that the promoting stress had not but abated. Being a weekly open, the three October excessive and low may very well be essential ranges for merchants over the following week

. Therefore, even bearishly biased market contributors may need to anticipate the three October ranges to be established.

ATOM set to slip southward as soon as once more?

Supply: ATOM/USDT on TradingView

A decrease timeframe chart confirmed a bearish market construction for ATOM. On increased timeframes reminiscent of four-hour and day by day, the downtrend was seen as properly. This meant merchants can search for shorting alternatives to commerce with the development. The Relative Energy Index (RSI) has been under the impartial 50 mark for a lot of the previous week. This highlighted regular downward momentum behind the value.

The Accumulation/Distribution (A/D) line had additionally been on a robust downtrend over the previous ten days, to focus on heavy promoting stress. Sellers had been within the driving seat, and so they had been unlikely to vacate in a rush.

The value motion confirmed the $12.4 area act as a short-term help over the previous few days. As soon as this zone gave approach, ATOM was fast to push as far south as $11.97. Therefore, a retest of this zone would possible supply a promoting alternative. Invalidation of this bearish notion can be an hourly session shut above $12.6. Bearish targets embody $11.7 and $11.15.

Costs and OI each depress- is the underside not in but?

Supply: Coinglass

Towards the ultimate week of September, Open Interest started to rise as the value ranged between the $14.7 and $13.7 ranges. Nevertheless, as soon as the $13.7 degree failed to carry as help, the OI shot upward. Prior to now few days, the OI has slowly begun to fall alongside the value. This downward development within the futures market was a bearish sign and urged that the downtrend may not have discovered an area backside.

Cosmos was within the technique of a bounce from $12 to retest the $12.4 resistance zone. The $12.4-$12.5 would supply sellers a great risk-to-reward shorting alternative with a transparent invalidation state of affairs. Bitcoin [BTC] additionally had a bearish outlook because it sat above the $19k mark, and has confronted rejection twice close to the $20.2k degree prior to now week.