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- The market construction was bearish on the four-hour timeframe.
- The demand seen in spot markets hinted at accumulation and a potential rally for Cosmos.
Cosmos [ATOM] has struggled on the worth charts within the latter half of the month, after posting beneficial properties of 31% from 10 March to 14 March. Since then, the worth has retraced most of these beneficial properties, however the patrons slowly clawed their manner again right into a place of power.
Learn Cosmos’ [ATOM] Worth Prediction 2023-24
After the drop to the $10.65 degree on 28 March, ATOM bulls have been in a position to combat again the bearish malaise. Furthermore, previously week, they’ve succeeded in defending the $10.97-$11 assist zone as nicely.
ATOM dips its toes right into a bullish order block and restoration was in movement
Supply: ATOM/USDT on TradingView
After the robust pump from $10.29 to $13.48 in mid-March, ATOM has been pressured to retrace its beneficial properties on the worth chart. It has made a collection of decrease highs and decrease lows since breaking down beneath the $12.73 assist degree on 18 March.
The latest decrease excessive was marked by the blue line at $11.65. Utilizing the candle wicks to determine construction makes the break in construction extra important if it happens. Up to now two weeks, regardless of the sudden spike in volatility that led to those massive higher candlewicks, ATOM closed a session above a latest decrease excessive.
Due to this fact, its construction remained bearish. Furthermore, the Fibonacci retracement ranges confirmed the $10.97 and $11.51 because the 78.6% and 61.8% retracement ranges. The golden pocket is the realm between these ranges, however ATOM has already dropped beneath it. Beneath this area sat an H4 bullish order block at $10.6, highlighted in cyan.
The CMF has been climbing in latest days to indicate +0.19, whereas RSI additionally rose to 57.8 to indicate bullish momentum. Due to this fact, the decrease excessive at $11.65 have to be breached earlier than the bias can flip bullish.
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The spot CVD confirmed accumulation was in progress
Supply: Coinalyze
The Open Curiosity surged from $70 million on 27 March to $102.8 million on Saturday, regardless that ATOM itself was caught beneath the $11.5 resistance. The spot CVD has additionally been in a robust uptrend since 22 March, which denoted heavy demand behind the token.
Due to this fact, it was seemingly that Cosmos bulls will drive the costs again above $11.5. The Fibonacci retracement ranges can halt the bulls, not less than briefly.
