ATOM was one of the few digital coins that bypassed last week’s downside pressure. Though this attracted bulls, they could not cement their position after meeting friction around the near-term resistance mark.
That saw ATOM sliding from the $16.95 high t $15.62 within no time, following a 7% slide. Moreover, the alternative token seems prepared for more dips in the upcoming sessions. Meanwhile, the near-term resistance remains strong to prevent upsides. Alternatively, it might show that ATOM failed to gather enough bullish strength to conquer resistance.
Another factor suggested possible massive slides from ATOM’s recent price action. The price noted a higher high closing over the weekend, whereas the Relative Strength Index recorded a lower high. This formation confirms a weakening bullish trend, consequently opening the door for bears to dominate.
Cosmos’ reversal indicated a sentiment change among market players following the latest resistance retest. The FTX and Binance funding rates suggest a decline in demand in the derivatives marketplace. The outcome within the derivatives market indicates sentiment shifted in bearish favor.
The alt’s on-chain volume suffered from this outcome, with buying pressure on the sidelines. The volume metric hovers at its lowest weekly mark. The asset’s weighted sentiment revealed a different story during this publication.
A brief surge indicated a recovering sensation in bulls’ favor following a minor retracement. That upsurge confirmed buying activities by some investors. Meanwhile, ATOM had its price at the 200-day MA. And that explains the brief weighted sentiment shift.
The ongoing sentiment remains massively bearish despite the minor upswing, which shows enormous sell pressure within the marketplace. Buyers participating around the current prices may be attempting to handle a falling knife. ATOM targets the support market around the $13.50 value area.
The crypto market endured a brutal drop within the previous day. The global cryptocurrency market cap declined by 7.58% over the past 24 hours to $899.66 billion. Also, Bitcoin surrendered the efforts to regain $20K with a 7.29% 24hr dip to $18,450.44. Moreover, the turmoil seems to continue. Time will tell the upcoming tendencies.