Cosmos: Why a bounce to $7.5 is possible amid strong bearish outlook

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

• Cosmos faces vital bearish stress and is headed towards additional losses on the value chart.
• The pocket of liquidity northward meant costs might briefly be attracted increased.

Cosmos [ATOM] bulls have struggled to defend vital assist ranges on the value chart over the previous month. The downtrend has not halted and the sellers didn’t budge from the driving seat. If this promoting stress persists, ATOM might fall to the upper timeframe assist degree at $6.9, and even decrease.

Learn Cosmos’ [ATOM] Value Prediction 2023-24

Cosmos has a agency bearish outlook on the value chart throughout a number of timeframes, and merchants can be careful for shorting alternatives within the coming days. A pocket of liquidity was highlighted to the north of ATOM- will we see a bounce to check this zone?

ATOM bulls dangle on to the $7.1 assist degree however for a way for much longer?

Supply: ATOM/USDT on TradingView

Cosmos has a bearish order block on the 12-hour chart at $7.8. On the upper timeframes reminiscent of 12-hour and 1-day, the value motion had a bearish construction with a collection of decrease highs and decrease lows. This was true on the 2-hour chart as effectively.

To interrupt the bearish construction, ATOM would want to climb above the latest decrease excessive at $7.27. Nevertheless, there’s a pocket of liquidity within the $7.5 zone, which confluences with a bearish order block on the 2-hour chart.

Due to this fact, a bounce to this zone would doubtless current a shorting alternative. Then again, the construction and momentum dictated that continued losses have been doubtless. The RSI was at 42, which confirmed weak bearish momentum. The OBV has trended downward over the previous week and signaled bearish dominance.

Reasonable or not, right here’s ATOM’s market cap in BTC phrases

The rising Open Curiosity confirmed some conviction from bidders

Supply: Coinalyze

On 27 August the Open Curiosity rose from $62.9 million to $65.7 million though ATOM costs solely noticed a minor bounce from $7.1 to $7.2. This confirmed speculators have been desperate to bid. Nevertheless, throughout that point the spot CVD was sliding downward.

Due to this fact, real demand for ATOM was not current, however this has modified prior to now 24 hours. The spot shopping for stress has elevated barely. Decrease timeframe merchants can look to quick at $7.26 and $7.5, based mostly on ATOM’s response at these areas.