Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.
- The daily time frame was bearish
- A move above $13 seemed unlikely and would provide impetus to the bulls
Cosmos has been in a downtrend since late September. Therefore, traders who want to trade with the trend can look at the higher time frame. On the short-term price charts, the last few days have seen a bounce from the $11 level.
Here’s AMBCrypto’s Cosmos Price Predictions [ATOM] For 2022-2023
in other news, 17 new projects It has been added to the Cosmos ecosystem. Could ATOM force a breakout in the higher time frame structure due to this latest positive news?
Short sellers rub their hands in anticipation of a $12.5 visit
On the daily time frame, the series of lower highs since mid-September has meant that the structure was bearish. Technical indicators also showed a neutral bearish bias. The Relative Strength Index (RSI) was below the neutral level of 50 on the 12-hour chart, but did not fall below 40 last week. This showed that the momentum was not strongly bearish. The Balance Volume (OBV) has also moved between two levels of support and resistance in the last month. Exceeding any of the levels can also pave the way for the next strong move.
Price action, as shown, favored sellers on the daily and 12 hour time frames. A group of Fibonacci retracement levels (in yellow) showed that the $13 mark was the 38.2% retracement level. The extension level was 23.6% at $9. A bearish order block was seen at $12.6, near this key $13 level.
Therefore, a short-lived rally in this area in the coming days may act as a catalyst for short sellers to look for selling opportunities.
The development activity decreased, and social domination could not break the local peaks
Development activity was strong in early to mid-October, but has slowed recently. Social dominance was also set at 0.72%. This was a ceiling that the benchmark failed to break even during the early September rally from $11.7 to $16.7.
A return to the $12.6 area can be used to enter short positions. A nullification of this idea might be to close a session above the bearish order block. To the south, the $10.53 and $9 levels could be used to take profits from the bears.