Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation.
- ATOM consolidates beneath resistance, OI down barely
- A bullish breakout may rely largely on a transfer above $19.6k for Bitcoin
The discharge of the Cosmos Hub Roadmap 2.0 gave a one-year guideline during which stakeholders can anticipate up to date options on the Cosmos Hub. It certainly captured among the buyers’ consideration. A current article highlighted how ATOM additionally famous a slight constructive change when it comes to developer exercise and TVL in Q3.
Right here’s AMBCrypto’s Value Prediction for Cosmos [ATOM] in 2022
The worth charts weren’t as rosy, particularly on the decrease timeframes. Bitcoin stuttered across the $19.4k-mark at press time. Though it sat atop assist, the rejection at $20.4k a couple of days in the past meant the momentum favoured the bears. Can ATOM see a bullish breakout in these situations?
ATOM stalls, however decrease timeframe construction stays bullish
Over the previous week, the value has fashioned a collection of upper lows. Extra importantly, it broke the earlier decrease highs at $12.54 and $12.84 to ascertain a short-term uptrend. This was extra of a bounce for larger timeframe charts, and this bounce confronted stiff resistance within the $13.4-area.
The ascending trendline (white) may supply some assist to the value. A session shut under $13 would flip the decrease timeframe construction to bearish but once more. This might see the value drop again to the $12.35-$12.4 assist zone.
Alternatively, a transfer above $13.4 would probably presage a powerful transfer north for ATOM. Such a transfer may push the alt to $14 and presumably, as excessive as $14.8, which represented a area of resistance from late September.
The RSI stood at 46. Though it fell under impartial 50, it didn’t present bearish momentum but on the time of writing. The OBV was additionally flat. This advised that neither the consumers nor the sellers had been notably sturdy. It additionally meant {that a} bullish breakout could possibly be extra unlikely.
Open Curiosity dips as quick sellers discover a small benefit
Coinglass knowledge revealed that the earlier 24 hours had a slight bearish skew on the Futures market. The Lengthy/Quick ratio indicated the bears had a slight numerical benefit. The funding rate for ATOM was in adverse territory. This meant quick positions paid funding to longs. The 24-hour Open Interest behind ATOM additionally declined by 2.4%, on the time of writing.
Taken collectively, the shopping for stress didn’t appear adequate to drive a bullish transfer on the value charts. And but, Bitcoin stood above its $19k assist. Therefore, a bounce may slowly drag ATOM north as properly. To the south, a revisit to the $12.4-level may supply a short-term shopping for alternative and a extra bearish situation may see ATOM fall to $10.6.