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ATOM Traders have every Reason to Stay Cautious Despite these Promising Updates

Cosmos Daily, a popular Twitter handle that posts Cosmos ecosystem updates, revealed an update about the ecosystem. In the last seven days, the most traded Cosmos IBC token was [ATOM]. Aside from ATOM, LUNC and FET were among the top three.

Not only has ATOM gained popularity in the last seven days, but it has also pleased its investors by registering massive gains of nearly 14%. ATOM’s price has risen by 11% in the last 24 hours, according to CoinMarketCap.

It was trading at $11.29 at the time of publication, with a market capitalization of more than $3.2 billion. However, the good times may be coming to an end, as CryptoQuant’s data revealed an update that favored the bears.

ATOM’s Relative Strength Index (RSI) was overbought, according to CryptoQuant. This could spark a sell-off in the coming days. As a result, a trend reversal is possible in the coming days.

ATOM’s daily chart also revealed a few additional indicators that corresponded to the sellers’ interest. For example, the Money Flow Index (MFI) was also in the overbought zone. This would increase the likelihood of a downtrend.

The On Balance Volume (OBV) and Moving Average Convergence Divergence (MACD) indicators, on the other hand, appeared bullish for ATOM. The Exponential Moving Average (EMA) Ribbon showed a bullish crossover, which could help to sustain the price surge.

When considering ATOM’s metrics, the outlook appeared extremely bearish, with the majority indicating that the tables would soon turn against ATOM. Binance and DyDx funding rates fell, which was a negative sign because it indicated less demand in the derivatives market.

ATOM’s social volume, on the other hand, has remained relatively high over the last week, reflecting its popularity.

Furthermore, analyst Caleb Franzen recently stated in a tweet that if crypto can maintain upside momentum, ATOM could have some of the strongest upside until it reaches its proven resistance.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.