Because the world waits to see whether or not the crypto market will escape of its fortnight vary, ATOM’s worth motion is already favoring the bears. It has achieved a major draw back to date this week and is at the moment headed for a retest of a key structural help degree.
ATOM traded at $9.77 at press time, after tanking by 8.85% within the final 24 hours and roughly 8% within the final seven days. Its present worth degree appears to be buying and selling inside structural help territory close to the $9 worth degree. This is a vital help vary as a result of it held properly over the last bearish drop within the second week of Might.
The precise worth degree supplied help over the last bear run in June and July. The worth bounced again a number of instances from the identical help vary. An analogous retest occurred a couple of hours earlier than this press, however the true query is whether or not the identical help degree will end in the same bounce-back.
Supply: TradingView
Regardless of the bearish worth motion, ATOM’s RSI remains to be hovering above oversold territory. A dip beneath help would probably create a lower-low to higher-high setup between the worth and RSI, therefore a bullish signal. The MFI means that buyers have been aggressively accumulating ATOM as the worth drops.
Supply: TradingView
What can we be taught from ATOM’s on-chain metrics?
So far as on-chain metrics are involved, each the Binance and FTX funding charges demonstrated indicators of weak spot within the final two days. This means decrease curiosity from the derivatives market, an indication that buyers turned extra cautious.
ATOM’s on-chain quantity dropped considerably throughout the identical interval. Regardless of the above observations, the whale promoting stress died down in the previous couple of days. The availability held by whales appears to have bottomed out in the course of the weekend and even registered some uptick. This remark may level in direction of the next chance that the $9 help degree will thrust back the bears.
Supply: Santiment
Conclusion
Present information suggests a major chance that ATOM’s structural help will maintain sturdy. In that case, we would see a major bounce-back close to the $9 worth vary. Nevertheless, the market remains to be vulnerable to unprecedented modifications within the information few days. Because of this there’s nonetheless important threat that ATOM may break help and search extra draw back, therefore buyers ought to tread cautiously.
