Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ATOM’s 4-hour chart was bearish at press time.
- Short-term sentiment in the futures market was neutral.
There is expected volatility this week (11-17 June) amidst the US FOMC meeting on 13-14 June. Most Fed watchers are confident there will be a pause in rate hikes. If that’s the case, the markets could see a positive reaction.
Read Cosmos’ [ATOM] Price Prediction 2023-24
Cosmos [ATOM], which recently edged closer to its 2022 lows of $5.550, could reverse losses if rate hikes are paused. However, a hawkish stance could bleed the market more, especially if Bitcoin [BTC] breaches the $25k support.
A rebound or slump – Which way for ATOM?
Source: ATOM/USDT on TradingView
The Fibonacci retracement tool was placed between a lower high in mid-April ($12.96) and a recent lower low ($7). The $5.54 – $6.53 (cyan) support zone is a bullish order block (OB) formed on the 1D chart on 18 June 2022. It could ease further bearish pressure on ATOM.
The RSI (Relative Strength Index) was deep in the oversold zone at press time, highlighting elevated short-term selling pressure. Similarly, the OBV dropped massively, undermining a solid demand for ATOM.
As such, sellers could regain control if ATOM fails to close above the 23.6% Fib level ($8.42). In such a scenario, sellers could push ATOM lower to $7 or $5.62 (bullish OB).
But bulls could see reprieve, especially if Fed takes a dovish stance and pauses rate hikes. Such a development could set ATOM to close above $8.42 and target the immediate resistance level of 38.2% Fib level ($9.288). The next target will be the $10 psychological level.
A negligible spread between long/short positions
Source: Coinglass
How much are 1,10,100 ATOMs worth today?
At press time, ATOM’s exchange long/short ratio indicated a negligible spread between long and short positions on the 4-hour timeframe. Sellers had little leverage, and buyers couldn’t be overruled – pointing to a neutral sentiment on the futures market.
The above position will change before and after the FOMC announcement; hence, traders should track this front alongside BTC price action.
