ATOM stalls after a 45% rally in two weeks — is the uptrend at an end
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
- Cosmos has carried out positively previously two weeks
- Can bulls look to re-enter longs on a decrease timeframe pullback?
Bitcoin [BTC] bumped into resistance close to the $21.5k mark. The promoting stress of the previous few hours was felt throughout the market and ATOM was no exception. Within the 36 hours previous the time of writing, ATOM posted losses near 10%.
Right here’s AMBCrypto’s Worth Prediction for Cosmos [ATOM] in 2022-2023
USDT (Tether) Dominance was on the rise over the previous two days in response to the drop in costs over the weekend. Nevertheless, on the charts, ATOM retained its bullish outlook.
$14 is a robust place for the prior rally to renew
The 2-hour chart confirmed that the market construction was flipped to the decrease timeframe bearish. The dip beneath the swing low at $15 (white) indicated a pullback was in progress. A couple of hours later the worth dropped to a low of $14.34. Regardless of the drop, the upper timeframe pattern remained bullish.
A set of Fibonacci retracement ranges (yellow) have been drawn primarily based on the transfer from $13 to $15.8. The 61.8% retracement stage stood at $14. This had some confluence with an inefficiency ATOM displayed on its approach up.
The transfer from $13.5 to $15.75 was fast, and a good worth hole was seen within the $13.85-$14.4 space (grey). Therefore, it was possible that the worth would run again into these ranges earlier than one other transfer upward.
The Relative Energy Index (RSI) dropped under impartial 50 to indicate a bearish bias within the brief time period. But, the On Steadiness Quantity (OBV) didn’t decline by an considerable quantity previously couple of days. This prompt that the current dip to $14.4 was solely a pullback and never the reversal of the pattern.
To the south, a better timeframe help stage lay at $13.5. This was the mid-range worth, with the vary excessive at $16.6. As soon as extra there was confluence between the vary highs and the 23.6% Fibonacci extension stage at $16.47.
OI declines in the course of the dip however the funding charge stays optimistic
ATOM’s rally from $13.5 noticed a major uptick within the Open Curiosity. Up to now couple of days, the OI receded alongside ATOM’s pullback. This highlighted the potential of lengthy merchants discouraged from the bullish outlook, however not essentially a pullback.
The funding rate has been optimistic for ATOM over the previous few days. The futures market individuals remained in a bullish place. Moreover, technical indicators confirmed short-term bearishness. Alternatively, the worth motion indicated a shopping for alternative may very well be across the nook.