Cosmos [ATOM] short traders stand to gain if BTC plies at this level

1 year ago 84

Disclaimer: The accusation presented does not represent financial, investment, trading, oregon different types of proposal and is solely the writer’s opinion

  • ATOM was successful a terms correction that could widen to $9.661.
  • A determination beyond $10.221 would invalidate the bearish forecast.

Cosmos [ATOM] rallied from mid-December 2022 to aboriginal January 2023, rising from $8.5 to astir $10. It offered implicit 20% gains to investors successful the aforesaid duration. 

Read Cosmos’ [ATOM] Price Prediction 2023-24

However, the king coin, Bitcoin [BTC], turned bearish, forcing astir of the altcoins into a correction. ATOM dropped beneath $10.038 soon aft BTC fell beneath $16.81k. At property time, ATOM was trading astatine $9.955, and method indicators suggested a further downtrend was likely. 

ATOM connected a escaped fall: Will the bulls find dependable support?

Source: ATOM/USDT connected TradingView

On the 12-hour chart, the Relative Strength Index (RSI) had reached the overbought portion and retreated. Similarly, the Money Flow Index (MFI) had peaked accumulation, and immoderate organisation had occurred.

Moreover, On Balance Volume (OBV) dipped, reinforcing the driblet successful trading volumes and limiting buying pressure. Therefore, the conditions were ripe for the terms reversal that followed. However, the correction could extend, fixed the dip successful the OBV. 

If selling unit intensified, ATOM could interruption beneath the $9.951 oregon 100-period EMA of $9.933. It could find caller enactment astatine $9.825 oregon $9.661. Short traders tin usage these levels arsenic short-selling targets.  

However, a breakout supra $10.221 would invalidate the supra bearish bias, particularly if BTC remains bullish. Therefore, investors should show BTC movements and immoderate RSI rejection, particularly astatine the midpoint of 50 units. 

Cosmos saw a diminution successful trading measurement and investors’ confidence

Source: Santiment

According to Santiment, ATOM’s improvement enactment dipped by the extremity of December 2022, bottoming retired connected 31 December. However, it has accrued gradually since 1 January, boosting investors’ confidence, arsenic evidenced by improved sentiment successful the aforesaid period.

However, weighted sentiment retreated toward the neutral level arsenic prices dropped with the diminution successful trading volumes. At property time, improvement enactment remained high, yet ATOM’s prices dropped lower.

How many ATOMs tin you get for $1?

Nevertheless, determination was an summation successful request successful the derivatives market, arsenic shown by the emergence successful Binance Funding Rate for the ATOM/USDT pair. 

Although the emergence successful request successful the derivatives marketplace could apt power a terms change, investors should way immoderate uptick successful measurement and a bullish BTC to corroborate a inclination reversal.

Ser Suzuki Shillsalot has 8 years of acquisition moving arsenic a Senior Investigative writer astatine The SpamBot Times. He completed a two-hour people successful journalism from a fashionable YouTube video and was 1 of the fewer to springiness it a affirmative rating. Shillsalot's writings chiefly absorption connected shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is simply a flimsy anticipation the illustration pic is AI-generated. You see, this relationship is chiefly utilized by our freelancer writers and they privation to stay anonymous. Wait, are they Satoshi? :/

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