Cryptocurrency

What investors can do as Cosmos [ATOM] approaches key structural support level

As the world waits to see whether or not the crypto market will get away of its fortnight vary, ATOM’s worth motion is already favoring the bears. It has achieved a big draw back to this point this week and is presently headed for a retest of a key structural support level.

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 level appears to be buying and selling inside structural support territory close to the $9 worth level. This is a vital support vary as a result of it held effectively over the last bearish drop within the second week of May.

The actual worth level supplied support over the last bear run in June and July. The worth bounced again a number of instances from the identical support vary. An identical retest occurred just a few hours earlier than this press, however the true query is whether or not the identical support level will lead to an analogous bounce-back.

Source: TradingView

Despite the bearish worth motion, ATOM’s RSI continues to be hovering above oversold territory. A dip under support would possible create a lower-low to higher-high setup between the worth and RSI, therefore a bullish signal. The MFI means that investors have been aggressively accumulating ATOM as the worth drops.

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Source: TradingView

What can we be taught from ATOM’s on-chain metrics?

As 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 signifies decrease curiosity from the derivatives market, an indication that investors turned extra cautious.

ATOM’s on-chain quantity dropped considerably throughout the identical interval. Despite the above observations, the whale promoting stress died down in the previous few days. The provide held by whales appears to have bottomed out through the weekend and even registered some uptick. This statement may level in the direction of a better chance that the $9 support level will chase away the bears.

1653646751 95 What investors can do as Cosmos ATOM approaches key structural

Source: Santiment

Conclusion

Current knowledge suggests a big chance that ATOM’s structural support will maintain sturdy. In that case, we’d see a big bounce-back close to the $9 worth vary. However, the market continues to be liable to unprecedented adjustments within the information few days. This means that there’s nonetheless vital danger that ATOM may break support and search extra draw back, therefore investors ought to tread cautiously.

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