Cosmos (ATOM) bulls succeeded in defending the $5 mark support zone during the selloff that happened this week. ATOM price is still below the $6 mark.
Although ATOM price stayed on the backfoot over the past four months, a range breakdown happened last month and it dived below its crucial pivot mark of $8.
This range breakdown boosted seller confidence and threatened the short term holders, displaying negative sentiment. However, the short term trend favored the bear army as buyers looked trapped.
Until ATOM price sticks to the $7-8 zone, doors toward the downside zone of $4 were intact and further retracement could be seen ahead.
At press time, Cosmos was trading at $5.88 with an intraday drop of 2.26%, reflecting a downtrend on the chart. It has a monthly return ratio of -23.30% and -37.20% yearly, reflecting long-term bearishness.
The pair of ATOM/BTC is at 0.000102 BTC, and the market cap is $1.93 Billion. Analysts are neutral and suggest that ATOM may fluctuate around the $6 mark and could decline.
Could Cosmos (ATOM) Secured $5 Mark Amidst Severe Downtrend?
For the past few months, ATOM was trading in a sharp downtrend as it continued to lose gains. Recently, the market turned negative and the ongoing market sentiment looks negative which could impact further selloff in the ATOM token.
The RSI looks oversold, noted at around 35, while the MACD indicator reflected red bars along with a bearish crossover.
Out of 26 key indicators, 14 gave the sell signal, 9 were neutral, while only 3 signaled a buy call. This data highlighted that sellers have maintained their upper hand in it.
Development Activity Noted a Surge
Development activity data skyrocketed to the bluesky zone, noted at 337. This intense surge highlights the token’s growth, the potential for long term growth is high.
Social volume data reflected a stable move around 8, displaying average participation of investors on the social media platforms.
Notably, the total supply held by the whales data reflected a surge over the past few trading sessions, which implies the overall bullish stance.
A tweet by Waleed Ahmed on X revealed that ATOM reached its most crucial support zone at around $5 and could see a recovery ahead.
Open Interest Swims to Lows
Over the past few sessions, the open interest data declined sharply, conveying the fear among the holders to maintain their longs in the bearish market.
Notably, the open interest value declined over 1.20% to $72.20 Million over the last 24 hours, highlighting the long unwinding move.
Furthermore, the red bars over the last three sessions of the funding data indicates that shorts compensated long, which implies bearish sentiment.
The immediate support levels for ATOM price are $5.00 and $4.70, whereas the key upside hurdle is around $6.40 followed by $7
ATOM price traded below its significant moving averages and sails in the negative region below the $6 mark. Bulls need to charge their muscles and break the $6.50 mark anyhow to remain in the battle.
