As global investors wait to witness whether the cryptocurrency market will overcome its 2-week range, Cosmos has its price actions favoring bears. The alternative token has seen substantial declines over the week, currently approaching a crucial structural support barrier.
While publishing this content, ATOM changed hands near $9.77, following an 8.85% drop within the past day. Moreover, the token lost approximately 8% within the previous week. Its current actions have it nearing the structural support at $9. This area remains vital as it held steady during May’s second week’s bearish decline.
Moreover, the same support offered a footing during the June & July bearish cycle. ATOM rebounded several times for this foothold. Similar retests occurred a couple of hours before this publication. However, it remains whether the alternative token will see similar rebounds from the barrier.
ATOM has its Relative Strength Index staying beyond the oversold area regardless of the pessimistic price action. A decline beneath the support level would likely print a lower low to the higher high pattern between the RSI and price actions, revealing a bullish signal. The Money Flow Indicator shows investors accumulated ATOM amid price drops.
On-Chain Metrics
The FTX and Binance funding rates reveal weakness signals within the past 48 hours. That confirms faded interest within the derivatives marketplace and signals a more cautious approach by investors.
ATOM had its on-chain volume dropping significantly. Nevertheless, the past couple of days had whale selling momentum deteriorating. Supply by whales appears to have bottom over the weekend and even recorded some increase. Such developments might confirm amplified chances that the support at $9 can ward bears off.
Final Thought
According to the current data, ATOM’s structural support has a higher probability of holding steady, preventing extended bearish drops. Such cases might trigger a substantial rebound from the $9 value region. Nevertheless, the market remains susceptible to unprecedented fluctuation in the coming few days. That means ATOM has a higher chance of violating the support to suffer more declines. Therefore, market players should observe caution.
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