Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ATOM closed below the 38.2% Fib level ($8.5) on the daily chart.
- Open Interest surged as sellers took more open short positions.
Bitcoin [BTC] lost hold of the $29.5k range-low after a moderate July CPI data release on 10 August. The drop tipped bears to position for more gains, with most altcoins like Cosmos [ATOM] looking at likely losses over the weekend unless BTC reclaims $29.5k and aims at the mid-range of $30.4k.
How much are 1,10,100 ATOMs worth today?
In the meantime, ATOM printed a daily candlestick close below the crucial level of 38.2% Fib level ($8.5) on 10 August. It indicates increasing bear leverage, which could complicate matters for bulls.
Will ATOM flip 38.2% Fib level to resistance?
The steady drop from mid-July $10 to $8 at press time exposed ATOM to shed over 15% of its value. But the bearish pressure seems far from over after bulls failed to stop the drop at the 38.2% Fib level ($8.5).
For perspective, the Fibonacci retracement tool (yellow) was plotted between June highs and June lows. Based on the tool, the 50% Fib level ($8.9) was crucial in June and July. However, it cracked in August, forcing the bulls to regroup at the next support – 38.2% Fib level ($8.5).
The 38.2% Fib level has shown weakness after the daily candlestick closed below it on 10 August. If sellers flip the level to resistance, ATOM could drop further to 23.6% Fib level ($7.9) – a foray i
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Author: Benjamin Njiri
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