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Cosmos (ATOM) Derivatives Activity Increases Amid Bearish Trend

Aug 17, 2024
  1. Dynamics of Cosmos (ATOM) Derivatives Activity
  2. Outlook for Cosmos (ATOM) Price Action
  3. Indicators and Their Significance

Despite the overall bearish trend from the second quarter onwards, the ATOM cryptocurrency remains in the top 50 global crypto assets. Recent research indicates a significant increase in Cosmos derivatives activity over the past 24 hours.

Dynamics of Cosmos (ATOM) Derivatives Activity

According to research data, the open interest (OI) for Cosmos increased by 3%, reaching $70.96 million in the last 24 hours. Additionally, derivatives trading volume surged by 6%, amounting to $112.9 million. This suggests a growing bearish interest. Derivatives liquidation data confirmed this trend.

Outlook for Cosmos (ATOM) Price Action

The bearish trend for ATOM began in March 2024 when the price peaked at $14.505, following an ascending wedge formation. Since then, the price has been continuously declining, likely confirming a breakdown of the bearish pattern: the ascending wedge. The current chart structure resembles the formation of a falling wedge, which may indicate a bullish pattern in development.

Indicators and Their Significance

On the daily chart, indicators also depict a bearish trend. However, there has been a minor increase in buying input: the RSI rose above 14-SMA, while MACD still shows bearish dominance. This could suggest a potential future trend reversal.

While the current dynamics show a predominance of the bearish trend for ATOM, further changes in derivatives activity and key support and resistance levels may alter market dynamics.

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