Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The critical $8.98 support level broke after intense selling pressure.
- Longs bore the brunt with $277.96k worth of liquidation.
The bearish shelling of the $8.98 support level by Cosmos [ATOM] sellers yielded significant results over the past 24 hours. ATOM’s price had stagnated at the support level between 24 July and 31 July, with bulls refusing to give up the level.
Read Cosmos’ [ATOM] Price Prediction 2023-24
However, the bearish sentiment in the market, led by Bitcoin [BTC] dipping under $29k caught up with ATOM. With bears clearing this key level and ATOM retaining its bearish market structure, further losses could be looming.
Bulls defense caves in to selling pressure
Source: ATOM/USDT on Trading View
After ATOM failed to progress beyond the $10 price level, it faced waves of selling pressure. As the selling pressure intensified, bulls put up a week-long defense of the $8.98 support level. Conversely, a break below this key level could usher in a new vista of gains for sellers.
The Relative Strength Index (RSI) highlighted the strength of the bearish momentum. The RSI remained sub-50 since 22 July and edged closer to the oversold with a reading of 36, as of press time. Similarly, the On Balance Volume (OBV) continued to trend lower, hinting at sellers gaining the upper hand.
A look southward showed that bears could be aiming for a June low of $7.2. However, the $8 level stands in their way, as bulls have rallied from that price zone in the past. Safe short-term targets for bears will lie at $8.2 and $8.5.
A bullish rebound for ATOM will be highly dependent on Bitcoin reversing some of its recent losses. Else, sellers will retain the momentum and continue riding the bearish wave.
Longs terribly hurt by break in critical support level
Source: Coinglass
How much are 1,10,100 ATOMs worth today?
ATOM longs in the futures market suffered terrible losses, due to the breach of the support level. Data from Coinglass showed that $277.96k worth of long positions were liquidated over the past 24 hours. This represented 98.4% of the total liquidations within the period.
Shorts quickly seized the initiative to dominate the long/short ratio with a 52% share of open contracts. Together, this reinforced the leverage sellers hold in the near term.
Source: Coinglass
