Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- ATOM was experiencing a price correction which could have an impact on ATOM’s ability to reach $9.661.
- The bearish forecast would be invalidated if the price moves above $10.221
Cosmos [ATOM] It rallied between mid-December 2022 & early January 2023, climbing from $8.5 – $10. Investors experienced over 20% gains during this same time period.
Read Cosmos’ [ATOM] Price Prediction 2023-24
Bitcoin, however, is the king coin. [BTC], which turned bearish, forcing most altcoins to correct. Soon after BTC dropped below $16.81k, ATOM fell below $10.038. ATOM traded at $9.955 as of press time. Technical indicators indicated that a further downtrend was possible.
ATOM in a freefall: Will the bulls find stable support?
Source: ATOM/USDT TradingView
The Relative Strength Index, (RSI), had reached the overbought area and retreated on the 12-hour chart. The Money Flow Index, (MFI), had also reached the overbought zone and had seen some distribution.
Additionally, the On Balance Volume (OBV), a measure of trading volume, fell, further limiting buying pressure and increasing volatility. Thus, the time was right for the price reverse that occurred. The OBV dip could mean that the correction could continue.
ATOM could drop below the $9.951 price or 100-period EMA $9.933. If selling pressure increased, ATOM may fall below that level. It could find support at $9.825 and $9.661. These levels are ideal for short-selling targets.
A breakout above $10.221 would negate the previous bearish bias, particularly if BTC is bullish. Investors should be aware of BTC movements, and any RSI rejection, particularly at the 50-unit mark.
Cosmos saw a decline in trading volume and investors’ confidence
Source: Santiment
According to Santiment, ATOM’s development activity dipped by the end of December 2022, bottoming out on 31 December. However, it has increased gradually since 1 January, boosting investors’ confidence, as evidenced by improved sentiment in the same period.
Weighted sentiment fell to neutral as trading volumes declined and prices dropped. At press time, development activity remained high, yet ATOM’s prices dropped lower.
How You can get many ATOMs for as low as $1?
There was nonetheless an increase in derivatives demand, as demonstrated by the rise in Binance Rate for the ATOM/USDT couple.
The rise in demand for derivatives could influence a price increase, but investors should monitor any volume increases and bullish BTC signals to confirm a trend reversal.