Convergence

Cosmos

<ul>
 <li><em>ATOM may drop as low as $9 as the 2024 ride begins.</em></li>
 <li><em>Traders should watch out for the funding rate for a buying opportunity.</em></li>
</ul>
<p><a href="https://ambcrypto.com/search/atom" data-wpel-link="internal" rel="noopener noreferrer nofollow">Cosmos [ATOM]</a> has started erasing the gains it had in the last 30 days, and according to analyst Ali Martinez, more could be on the way.</p>
<p>His analysis showed that ATOM could start the new year by correcting to $9. Martinez’s post on X showed that he used the Tom DeMark (TD) Sequential to arrive at his conclusion.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">The TD Sequential has flashed a sell signal on <a href="https://twitter.com/hashtag/Cosmos?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Cosmos</a> 3-day chart! This indicator suggests a possible price correction could be on the horizon, potentially driving <a href="https://twitter.com/search?q=%24ATOM&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$ATOM</a> down towards $10, or even as low as $9. <a href="https://t.co/FwvXLL6RBp" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/FwvXLL6RBp</a></p>
 <p>— Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1741458686365618310?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">December 31, 2023</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h4>Participants withdraw interest</h4>
<p>The TD Sequential indicates the time of exhaustion of a trend and possible price reversal. So, the <a href="https://ambcrypto.com/atom-price-rebounds-is-a-13-prediction-on-the-cards/" data-wpel-link="internal" rel="noopener noreferrer nofollow">prediction</a> suggested that buyers involved in pushing the token to $12.25 on the 26th of December were out of the market.</p>
<p>At press time, ATOM’s price was $10.58, representing a 6.38% decrease in the last seven days.</p>
<p>A few days back, AMBCrypto <a href="https://ambcrypto.com/atom-pumps-but-alls-not-well-with-cosmos-heres-why/" data-wpel-link="internal" rel="noopener noreferrer nofollow">reported</a> a surge in the ATOM price. In that article, we also highlighted how the Comsos network activity has been impressive.</p>
<p>While that article was a booster for ATOM holders, the same cannot be said of this recent prediction.</p>
<p>This led AMBCrypto to check the <a href="https://app.santiment.net/charts/GYnd3W42__sCl" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">volume</a> over the last week. According to our analysis of Santiment’s on-chain data, ATOM’s volume had decreased.</p>
<p>As of this writing, the volume was 129.8 million. This was a notable drawdown from the amount on the 26th of December.</p>
<div id="attachment_361525" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-06.45.46-01-Jan-2024.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-361525" decoding="async" class="size-full wp-image-361525" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-06.45.46-01-Jan-2024.png" alt="ATOM price and volume on the Cosmos network" width="2560" height="867" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-06.45.46-01-Jan-2024.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-06.45.46-01-Jan-2024-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-06.45.46-01-Jan-2024-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-06.45.46-01-Jan-2024-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-06.45.46-01-Jan-2024-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-06.45.46-01-Jan-2024-2048x693.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 <p id="caption-attachment-361525" class="wp-caption-text">Source: Santiment</p>
</div>
<p>At that time, the volume was 479.75 million. The volume shows the amount of cryptocurrency traders over a given period. Therefore, the decrease was a testament to the initial notion that buyers had withdrawn their interest in ATOM.</p>
<h4>Tired buyers put bears on the wheel</h4>
<p>From a technical point of view, the cryptocurrency’s momentum was neck-deep in the bearish zone. This assertion was confirmed by the Moving Average Convergence Divergence (MACD).</p>
<p>At press time, the MACD was -0.020. Negative values of this indicator suggest increasing downward momentum.</p>
<p>So, Martinez’s prediction that ATOM might drop below $10 could be valid. Another indicator supporting the bias is Aroon. As of this writing, the Aroon Down (blue) was 85.71%.</p>
<p>The Aroon Up (orange), on the other hand, was 7.14%. This crossover implies that the downtrend might continue in the short term.</p>
<div id="attachment_361529" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/ATOMUSD_2024-01-01_06-56-26.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-361529" decoding="async" class="size-full wp-image-361529" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/ATOMUSD_2024-01-01_06-56-26.png" alt="ATOM price analysis on the 4-hour chart" width="1355" height="721" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/ATOMUSD_2024-01-01_06-56-26.png 1355w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/ATOMUSD_2024-01-01_06-56-26-300x160.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/ATOMUSD_2024-01-01_06-56-26-1024x545.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/ATOMUSD_2024-01-01_06-56-26-768x409.png 768w" sizes="(max-width: 1355px) 100vw, 1355px"></a>
 <p id="caption-attachment-361529" class="wp-caption-text">Source: TradingView</p>
</div>
<p>Despite the bearish potential, ATOM’s <a href="https://app.santiment.net/charts/HIsOJMaG__sCl" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Funding Rate</a> remained in the positive region at 0.039%. This suggested that traders were bullish on the price action at press time. So, more longs are paying a funding fee to shorts.</p>
<p style="text-align: center;">Read <a href="https://ambcrypto.com/predictions/cosmos-price-prediction" data-wpel-link="internal" rel="noopener noreferrer nofollow">Cosmos’ [ATOM] Price Prediction</a> 2023-2024</p>
<p>However, high funding when the ATOM price is decreasing is not a good entry sign.</p>
<p>So, traders on the sidelines may need to watch out when the Funding Rate flips negative. Another opportunity could also be the period when ATOM reverses to the upside after the potential decline.</p>
<div id="attachment_361536" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-07.03.21-01-Jan-2024.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-361536" decoding="async" class="size-full wp-image-361536" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-07.03.21-01-Jan-2024.png" alt="ATOM funding rate and price action" width="3840" height="1300" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-07.03.21-01-Jan-2024.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-07.03.21-01-Jan-2024-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-07.03.21-01-Jan-2024-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-07.03.21-01-Jan-2024-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-07.03.21-01-Jan-2024-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Cosmos-ATOM-07.03.21-01-Jan-2024-2048x693.png 2048w" sizes="(max-width: 3840px) 100vw, 3840px"></a>
 <p id="caption-attachment-361536" class="wp-caption-text">Source: Santiment</p>
</div>

ATOM flags bearish warning: Will prices hit $9?

AMBCrypto

Other articles published on Jan 1, 2024

Orbit Chain Lost $81M To A Major Hack Exploit On New Year Eve

Pro XRP lawyer John Deaton spotlights Warren’s lack of action in FTX case

Bitcoin’s 2024 Forecast: From $60,000 To $500,000, Top Experts Share Bold Predictions

Investors turn to XRP, RBLZ, and LINK for growth

Proof-of-Work: The Original & the Prevalent Consensus Mechanism

Decoding the Concept of Security Tokens for Better Investment

Join our free newsletter for daily crypto updates!