Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ATOM flipped its market structure bearishly after the drop below $7.17
- The retest of $7 as resistance painted a gloomy short-term picture for the bulls
Cosmos [ATOM] announced that IBC was coming to the Binance Smart Chain. This expansion is expected to offer more opportunities for ATOM to be staked in smart contracts. While this announcement was followed by an 8% move higher, these gains have been wiped out since.
Read Cosmos’ [ATOM] Price Prediction 2023-24
A previous ATOM analysis from AMBCrypto highlighted that the $7 level was an important support level. The past week saw this level yield a >10% rally, but the bears have succeeded in breaching it. What can traders plan for ATOM for the next week?
The strong bearish intent meant a move toward September lows was possible
ATOM wiped out all its past week’s gains and then some. The Fibonacci levels (pale yellow) showed that a four-hour trading session closed below $6.866, which was 26 September’s low. The drop below 78.6% retracement meant ATOM was likely headed further south.
The 23.6% and 61.8% extension levels at $6.67 and $6.37 could be places where bulls try to put up a fight. The Relative Strength Index’s (RSI) reading of 36 meant momentum was firmly bearish. So was the market structure.<
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Author: Akashnath S
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