Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Market uncertainty limited ATOM to a compact range.
- Longs and shorts neutralized each other in the futures market.
ATOM maintained its bearish bias despite a mild bullish bounce that saw the altcoin gain 8% between May 10 and May 15.
From Bitcoin [BTC] drop below $28k showed that the overall market trend remained bearish and bounces were treated as short lived rather than a trend reversal.
However, ATOM varied between the main support and resistance level. Can traders expect any of these levels to break?
Read Cosmos [ATOM] Price Forecast 2023-24
Bulls and bears compete for a long-distance escape
Source: ATOM/USDT in trade view
ATOM’s downward spiral from mid-April was caught at the key $10.5 support level. Thereafter, prices traded within a compact range of $10.5 to $11.5.
Bears quickly halted a bullish breakout above the USD 11.5 resistance on April 29 to bring the price back within the range. A similar attempt by bears to break the USD 10.5 support on May 9 was quickly reversed by bulls to keep the price within the range.
Mixed signals from the chart’s indicators provided little confirmation. The Awesome Oscillator (AO) remained above the zero line.
However, it flashed a mix of green and red bars. The Relative Strength Indicator (RSI) was also hovering just above the neutral 50, standing at 58 at the time of going to press. This suggested that buyers could be just slightly ahead of sellers.
An important clue to ATOM’s next move is what happens when price approaches resistance ($11.5) or support ($10.5). A retest of the $10.5 support level could see bears achieve their goal of lowering prices.
Conversely, a significant rally by bulls could take them above the $11.5 resistance level.
Neutral position for longs and shorts amid fluctuating funding rates.
Source: Coinalyse
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The four-hour chart Coin analysis showed that funding rates have fluctuated between positive and negative since April 26. ATOM’s fluctuating funding rates indicated hesitant demand in the futures markets. This could give bears an advantage.
In addition, the exchange long/short ratio showed that buyers and sellers cancel each other out. This portrayed the uncertainty about ATOM’s short-term movements.
Source: Coinglass
