Cosmos (ATOM) Experiences Downtrend as Sellers Dominate Market

One sentence summary – Cosmos (ATOM) has been in a consistent downtrend, with sellers dominating the market and potentially causing the price to fall further; traders are advised to be cautious as the outlook remains bearish, but there are potential shorting opportunities at certain price levels.

At a glance

  • Cosmos (ATOM) has been experiencing a consistent downtrend in its price chart over the past month.
  • Sellers have been dominating the market, maintaining control over ATOM’s price chart.
  • If the selling pressure continues, ATOM could potentially fall to the support level at $6.9 or even lower.
  • Traders are advised to remain cautious as Cosmos currently presents a bearish outlook on various timeframes.
  • A bearish order block has been observed at $7.8 on the 12-hour chart, indicating a bearish market structure characterized by lower highs and lower lows.

The details

Cosmos (ATOM) has been experiencing a consistent downtrend in its price chart over the past month.

Sellers have been dominating the market, maintaining control over ATOM’s price chart.

If the selling pressure continues, ATOM could potentially fall to the support level at $6.9 or even lower.

Traders are advised to remain cautious as Cosmos currently presents a bearish outlook on various timeframes.

On the 12-hour chart, a bearish order block has been observed at $7.8.

This suggests a bearish market structure characterized by lower highs and lower lows.

To break this bearish structure, ATOM would need to surpass the recent lower high at $7.27.

A pocket of liquidity has been identified at $7.5.

This provides a potential shorting opportunity if ATOM bounces to that zone.

The Relative Strength Index (RSI) for ATOM currently stands at 42.

This indicates weak bearish momentum.

The On-Balance Volume (OBV) for ATOM has been trending downward.

This signals the dominance of bearish sentiment in the market.

Open Interest for ATOM increased from $62.9 million to $65.7 million on August 27.

This suggests an increased interest from speculators in bidding.

Although genuine demand for ATOM was not prominent at that time, spot buying pressure has slightly increased in the past 24 hours.

Lower timeframe traders may consider shorting ATOM at $7.26 and $7.5, based on the market’s reaction at these regions.

In conclusion, Cosmos (ATOM) has been experiencing a downtrend, with sellers maintaining control.

Traders should be cautious given the bearish outlook on multiple timeframes.

The presence of a bearish order block at $7.8 and a pocket of liquidity at $7.5 offers potential shorting opportunities.

While weak bearish momentum is indicated by the RSI, the recent increase in spot buying pressure suggests a nuanced market sentiment.

Traders can consider these factors while formulating their trading strategies.

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– Cosmos (ATOM) has been experiencing a downtrend on the price chart over the past month.
– Sellers have remained in control, and if selling pressure continues, ATOM could fall to the support level at $6.9 or lower.
– Traders should watch for shorting opportunities as Cosmos has a bearish outlook on multiple timeframes.
There is a bearish order block at $7.8 on the 12-hour chart, indicating a bearish structure with lower highs and lower lows.
– To break the bearish structure, ATOM would need to climb above the recent lower high at $7.27.
There is a pocket of liquidity at $7.5, which could present a shorting opportunity if there is a bounce to that zone.
The RSI is at 42, indicating weak bearish momentum, and the OBV has been trending downward, signaling bearish dominance.
– Open Interest for ATOM rose from $62.9 million to $65.7 million on August 27, indicating speculators were eager to bid.
– However, genuine demand for ATOM was not present at that time, but spot buying pressure has increased slightly in the past 24 hours.
– Lower timeframe traders can consider shorting at $7.26 and $7.5 based on ATOM’s reaction at those regions.

 

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