Cosmos (ATOM) prices bounced back from the $8.43 level on 15 June. This level had previously acted as a strong support for ATOM bulls, but it was breached in the bearish momentum of 10 June. This recovery triggered a rally that is still ongoing, with ATOM climbing 22% before facing resistance at $10.
As this article is being written, Bitcoin (BTC) is trading under the $30.8k level, indicating that the market could be dominated by the bears soon. However, the bulls still have a chance to reverse the trend.
ATOM’s Numbers Over the Weeks
The price of ATOM fell below $9.34 on 5 July, which was a higher low point than before. This indicated a possible change in the market structure from bullish to bearish, but it was not a conclusive sign. The zone between $9.1 and $9.4 had been a strong resistance area since 21 June and had recently turned into a support area.
The RSI went down under 50, which meant that the sellers had more momentum than the buyers. The OBV also declined but maintained its upward trend from 12 June. Considering all these factors, it was unclear if the bears could take over. However, with BTC trading below $31k, it might be hard for the price to go above $10 in the next few days.
ATOM buyers may be interested in the asset, but they should also consider the possibility of a market reversal. The short-term trend was not clear, but the buyers had a slight advantage. A fall below $9.1 would suggest ATOM traders can switch to selling positions instead.
The $10.2-$10.6 zone was a resistance area. Therefore, swing traders can take profits here, and buy again if the price moves above $10.6.
Cosmos and the Open Interest have dropped in the last two days. This indicated that longs were losing confidence and that the market was feeling pessimistic. However, this was only on the 1-hour timeframe chart. Therefore, the sentiment could turn optimistic in the short term if the price rebounds from the support zone at $9.4.
