Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ATOM prices climbed steadily toward $9 but the buying volume remained muted.
- The trend was bearish but volatility could see a move above $9 to grab liquidity before a reversal.
In the past three days, Bitcoin managed to bounce from $24.8k to $26.6k. Yet, its trend was not yet bullish. Cosmos has also climbed steadily higher since last Sunday. Sunday, 10 June, saw Cosmos trading at $8.15. The prices have risen by 10.14% since and ATOM traded at $8.76 at press time.
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The USDT dominance fell in the past three days, showing some capital flow from stablecoins back into crypto assets. Yet, despite BTC’s short-term gains, neither BTC nor ATOM presented a strong bullish case.
ATOM bulls valiantly defended $8.5 but there was a disturbing lack of demand
![Cosmos [ATOM] traders expect further losses but the bulls weren't yet depleted](https://statics.ambcrypto.com/wp-content/uploads/2023/06/PP-2-ATOM-price.png)
Source: ATOM/USDT on TradingView
On 10 June, ATOM fell as low as $7.01, a level it had not reached since July 2022. After that drop, ATOM registered a 27% bounce. While that could be considered impressive, context was important. The market structure remained bearish, although a move above $9 would signal short-term bullish intent.
The RSI climbed above neutral 50 to signal a potential shift in momentum. However, the OBV was unable to crack the past week’s resistance. This showed that even though the price made higher lows in the past week the buying pressure was weak.
The CMF stood at +0.05 at the time of writing, once more showing that there was some buying pressure but not a significant capital influx to the ATOM market. The Fibonacci retracement levels showed that $8.62 and $9.06 were important resistance levels. The $8.62 was already breached, but a rejection from $9.06 remained possible.
Massive negative funding rate revealed prevalent market sentiment
![Cosmos [ATOM] traders expect further losses but the bulls weren't yet depleted](https://statics.ambcrypto.com/wp-content/uploads/2023/06/PP-2-ATOM-coinalyze.png)
Source: Coinalyze
While the OBV struggled to climb past a local resistance, the spot CVD showed some upward impetus on 12 and 13 June. These minor gains were quickly rolled back as selling pressure set in on 14 June. Atom’s Open Interest also slumped by $7 million.
Realistic or not, here’s ATOM’s market cap in BTC terms
The OI climbed higher over the past two days as ATOM bounced from $8.5. Yet, the funding rate remained negative over the past week. This showed the majority of the market was short, which also raised concerns that a short squeeze past $9 could occur. Risk averse traders can wait for Monday to establish a range before looking for opportunities.
Credit: Source link
