ATOM extends recovery: Are more gains likely?

Posted: September 22, 2023

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.

• ATOM recovered early September losses and prolonged restoration. 
• Demand wavered within the futures market, however patrons had leverage. 

Cosmos [ATOM] had a profitable restoration in September. It posted +18% good points after rising from $6.2 to $7.5. Nonetheless, it has struggled to carry on to the $7.5 degree since Monday (18 September). 

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In the meantime, Bitcoin [BTC] struggled to defend the mid-range degree of $27k as of press time and will head decrease. If that’s the case, sellers may stop ATOM’s worth from exceeding $7.5 within the coming days.

Will sellers inflict a reversal?

Supply: ATOM/USDT on TradingView

The H12 chart confirmed ATOM was in an uptrend, making larger highs and better lows since 11 September. Equally, the RSI shifted from the low to the higher vary, demonstrating that purchasing stress surged over the identical interval. 

Equally, the CMF and OBV recorded upticks, underscoring improved capital inflows and Spot market demand over the identical interval. These optimistic readings make an additional bullish state of affairs probably. 

Even so, a BTC’s reversal may drag ATOM’s restoration. In such a state of affairs, exceeding $7.5 might be difficult. However a reversal may ease on the $7.1 degree. It aligns with the 50-EMA (Exponential Shifting Common). An prolonged drop may ease at help zone of $6.8 – $6.9 (crimson). 

Nonetheless, a convincing reclaim of $7.5, particularly if BTC surges past $27k, may push ATOM to focus on $7.895. 

Demand wavered and funding charges had been destructive

Supply: Coinalyze

The Open rates of interest elevated between 15 – 18 September, however wavered afterward. It reveals demand surged and fluctuated over the identical period. It might be construed as a impartial bias. 

Nonetheless, the funding charges have been destructive regardless of the optimistic worth motion in the previous few days.  

How a lot are 1,10,100 ATOMs price in the present day?

The conflicting readings add to the Spot market patrons’ waning leverage, as proven by the optimistic however retreating CVD (Cumulative Quantity Delta). 

Therefore, merchants ought to observe BTC actions for readability and doable market course.