The Cosmos crypto suffered a drop of around -35% this summer 2023. Let’s see the future prospects for the price of this ATOM cryptocurrency.
Cosmos (ATOM) crypto situation
After rejecting the $10 at the beginning of July 2023, the price of ATOM crypto continued its decline. She is getting dangerously close to her last low point since her ATH.
The price of the crypto is now trading just below $7. It is below the 50 and 200 day moving average, both clearly trending lower. This clearly demonstrates the bearish structure that begins the cryptocurrency.
Oscillators demonstrate bearish momentum. However, it is interesting to highlight a nice divergence on the latter. This theoretically prevents the onset of a trend reversal. From a charting perspective, we can see that the ATOM crypto price is making lower and lower lows. These figures warn, once again in theory, the coming of an upward movement.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Currently a trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around financial markets in a professional and warm atmosphere.
It is interesting to observe the CVD (Spot) of the Cosmos
CVD, or Cumulative Volume Delta, is an indicator that measures the cumulative difference between the volume of purchases and sales of a financial asset. It helps identify imbalances in transaction flow, which can signal a potential change in market direction.
This indicator is currently diverging with the fall in the price of ATOM crypto. This phenomenon suggests the fact that cryptocurrency attracts significant interest from buyers on the spot market. Thus, it can be a comforting factor for a possible trend reversal.
Focus on derivatives
According to Coinalyze, The open interest of Cosmos’ ATOM crypto is at its lowest in the last six months. Paradoxically, we can see that it was not as impacted as its price. This phenomenon demonstrates the dominance of sellerswhich was accentuated following numerous liquidations of long positions, caused by the decline in the crypto market in mid-August 2023.
The hypotheses for this crypto
- If ATOM breaks and holds $7.5, we could anticipate a bullish continuation up to $9. At this point, the next resistance to consider will be the psychological threshold of $10.
- If ATOM fails to turn around soon, we could consider a return to $6-5. At this point, the next support to take into account would be around $4.8 see $4 for a more pessimistic view.
Conclusion
The Cosmos crypto is still in a downtrend. However, more and more factors demonstrate the coming of a potential bullish reversal. Obviously, nothing has been done yet. Thus, it will be important to carefully observe the price reaction on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake out” and “market squeeze” in each situation. It should also be remembered that these scenarios are based mainly on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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