- ATOM wiped off its April gains, dropping by 15.3%.
- Fluctuating funding rates hinted at wavering demand for ATOM.
ATOM’s market structure has been bearish, since Feb 2023 with price making a series of lower highs on the daily timeframe.
Despite the overall bearish structure, ATOM has seen a few bullish rallies. April saw ATOM record gains of 20%. However, BTC’s correction from $30k to $28k saw those gains fade away. The coin dipped from its April high by 15.3% and was trading at $10.9, as of press time.
Read Cosmos’ [ATOM] Price Prediction 2023-24
ATOM bulls can’t seem to catch a break
ATOM’s latest bullish rally was swiftly rejected at the $11.5 price area with sellers continuing to dominate the market. Bulls had targeted a breach of the $11.5 level to flip ATOM’s structure.
The $10.5 support level has been an important zone for bulls. However, the four-hour timeframe showed that it had been tested three times between 9 March and 27 April. This might suggest a weakening resolve of bulls at that price level.
All signs point to sustained bearish momentum. The Parabolic SAR remained above the price. The RSI stayed under the neutral 50 briefly entering the oversold zone. The Awesome Oscillator posted several red bars in a row, both above and below the zero mark.
The short-term move could see bears face minimal resistance at the $10.5 level before continuing its downward trend. The target for bears will be $8.5. However, this level is a key price area for bulls, as it served as strong support for ATOM’s previous bull run.
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Bulls face hurdles in the futures market
Furthermore, data from Coinglass showed that buyers continued to experience significant losses. The past three days have seen $765.54k of longs liquidated. This represented 84.5% of the total liquidations.
Funding rates have also fluctuated, indicating unstable demand in the futures market. The Open Interest decline gave sellers a slight advantage, as the price edged toward the support level.
ATOM’s next move will closely align with BTC’s. A recovery for BTC could see new gains for ATOM while a dip could force more lows.