Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation
Information from Messari confirmed that previously week the buying and selling quantity has been fairly excessive and hovered across the $400m per day mark for Cosmos. This was in stark distinction to the sooner weeks of March when the every day buying and selling quantity was nearer to $250m. This uptick in quantity noticed a robust Cosmos rally, adopted by a pointy reversal.
ATOM- 1H
Supply: ATOM/USDT on TradingView
Fibonacci retracement ranges (yellow) had been plotted based mostly on ATOM’s transfer from $27.7 to $33.29 early this month. Up to now couple of days, the worth has dropped under the $31 space (crimson field) and flipped to a provide zone as soon as extra. The $29.81-$28.9 space didn’t maintain within the face of robust promoting.
Due to this fact, within the decrease timeframes, the momentum and market construction was bearish. The worth has additionally slipped beneath $27.7 assist degree and retested it as resistance, and seemed to be headed downward as soon as extra on the time of writing.
To the south, the $26.18-$25.36 space may act as a zone of demand.
Rationale
Supply: ATOM/USDT on TradingView
The RSI climbed towards impartial 50 as the worth bounced, however the market construction was bearish and the momentum, on the hourly chart, gave the impression to be headed downward as soon as extra. Furthermore, it was a discouraging sight for near-term bulls to see the $27.7 degree flipped from assist to resistance.
The DMI additionally confirmed {that a} robust bearish development was in progress whereas the RSI was shifting under the 40 mark- collectively, they spelt bearish strain. Alternatively, the OBV did see a drop however not a drop massive sufficient to succeed in the orange degree highlighted.
This meant that, despite the fact that the worth has fashioned a decrease low up to now week, the OBV has not. Which indicated that this leg downward was a response to concern out there, and ATOM may see a bounce within the close to future.
Conclusion
The momentum indicators confirmed bearishness, however the OBV shone a ray of hope for short-term ATOM bulls. On greater timeframes, the $26.4-$24.3 space was an space the place ATOM can see some accumulation at, earlier than a transfer upward.
