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- ATOM crashed to a new yearly low of $6.6.
- Negative financing rates combined with falling open interest rates could lead to further losses.
Cosmos [ATOM] hit a new low of $6.6 as sellers extended their bearish dominance by breaking below the critical $7 support level. The $7 support level had rejected June’s bearish swing, but selling pressure in late August caused the level’s bullish defenses to collapse.
Read Kosmos’ [ATOM] Price forecast 2023-24
Bulls overwhelmed by selling pressure
Source: ATOM/USDT on Trading View
The bearish momentum on ATOM’s price chart started in the first quarter of 2023. The big dip from the $15 price level was briefly countered by bulls at the $10 support level. However, the break from the higher low of the previous bullish run in early June caused a huge wave of selling pressure.
This caused ATOM to fall to a yearly low of $7 before a quick recovery. Despite the pullback, bearishness persisted in the third quarter, resulting in new lows for ATOM.
Although the bulls seemed to be recovering, the indicators did not look favorable. The Relative Strength Index (RSI) remained around the oversold zone, indicating a lack of buying pressure. On the other hand, On Balance Volume (OBV) recorded decent trading volume, although it also declined slightly in September.
A retest of the new resistance at $7 could see ATOM fall towards $6 to $6.5. These price levels also serve as a support level on the weekly time frame. On the other hand, a bullish reversal will require buyers to clear the current hurdle at $7 before mounting a proper rally.
Declining open interest indicated more losses
Source: Coinalyse
How much are 1,10,100 ATOMs worth today?
The sharp drop in Open Interest at the lower terms indicated more losses for ATOM. According to CoinalyseOI fell by more than $1 million, while prices continued to fall.
This pointed to an extension of medium-term bearish momentum. Likewise, financing rates remained negative as buyers continued to be wiped out.