At the time of writing, ATOM’s RSI was in an overbought position
In addition, MFI and funding rates also looked bearish
Cosmos Daily, a popular Twitter handle that posts updates related to the Cosmos ecosystem, has revealed an update on the ecosystem. The Cosmos [ATOM] was the most traded Cosmos IBC token in the past seven days. In addition to ATOM, LUNC and FET made it to the top three.
⚛️Most traded @cosmosibc Tokens last 7 days 🚀
🥇 $ATOM @cosmos
🥈 $LUNC @terrace_money
🥉 $FET @fetch_ai $KAVA @kava_platform $LUNA @terra_money $CRO @cryptocom $BAND @bandprotocol $OSMO @osmosiszone $INJ @Injective_$USTC @terrace_money #IBCGang #Cosmonauts @coingecko pic.twitter.com/d7oK0GUSCI
— Cosmos Daily ⚛️ (@CosmosATOMDaily) January 9, 2023
In the past seven days, ATOM not only gained popularity, it also managed to make its investors happy by making huge gains of almost 14%. According to CoinMarketCap, the price of ATOM is up 11% in the past 24 hours.
At the time of writing, it was trade at $11.29 with a market cap of over $3.2 billion. However, the good days may soon end like CryptoQuant’s data unveiled an update that put aside the bears.
Read Cosmos’ [ATOM] Price prediction 2023-24
Is a trend reversal inevitable?
According to CryptoQuant, ATOM’s Relative Strength Index (RSI) was in an overbought position. This could trigger a sell-off in the coming days. As a result, there is a chance of a trend reversal in the coming days.
ATOMThe daily chart also revealed a few other indicators that matched the seller’s interest. For example, the Money Flow Index (MFI) was also in the overbought zone. This would further increase the likelihood of a downtrend.
However, On Balance Volume (OBV) and Moving Average Convergence Divergence (MACD) looked bullish for ATOM. The Exponential Moving Average (EMA) ribbon showed a bullish crossover, which could play a key role in supporting the price increase.
How much ATOMs are available for $1?
This is what statistics suggest
By consideration ATOMAccording to the statistics, the outlook seemed extremely bearish as most suggested that the tables would turn against ATOM soon. Binance and DyDx funding rates fell, which was negative as it represented less demand in the derivatives market.
However, ATOM’s social volume remained relatively high over the past week, reflecting its popularity.
Moreover, Caleb Franzen, an analyst, recently mentioned in a tweet that if crypto can maintain upside momentum, ATOM could have one of the strongest advantages until it hits its proven resistance.
— Caleb Franzen (@CalebFranzen) January 9, 2023
This post ATOM traders have every reason to remain cautious despite these promising updates
was published first on https://ambcrypto.com/atom-traders-have-every-reason-to-stay-cautious-despite-these-promising-updates/