While Ether and Solana are in the green, some leading altcoins have been underperforming. Cosmos Hub (ATOM) is down 1.3% and now trades at $1.7350 per coin. The bearish performance comes as ATOM extends its correction for the second consecutive week amid persistent selling pressure. Furthermore, weakening on-chain and derivatives data support a bearish outlook. Technical indicators also remain unfavorable for ATOM. Derivatives data reflect a bearish bias ATOM risks dropping below the $1.7 level soon as derivatives data show declining retail participation in the market. CoinGlass’s OI-Weighted Funding Rate data for ATOM shows that the number of traders betting that the price of the coin will slide further is higher than those anticipating a price increase. The metric turned negative on February 25 and stands at -0.037% on Monday, indicating shorts are paying longs and suggesting bearish sentiment toward ATOM. Furthermore, ATOM’s long-to-short ratio reads 0.95 on Monday. The ratio dropping below one reflects bearish sentiment in the markets, as more traders are betting on the asset price to fall. According to Artemis, the daily active users, a metric that tracks network activity over time, have turned bearish for ATOM. The metric has been continuously declining since January and now reads 4,200. The decline indicates that demand for Cosmos Hub’s blockchain is decreasing, which could result in further price dip for ATOM. ATOM price forecast: Bears eye the February 6 low ATOM, similar to other leading cryptocurrencies, is extremely bearish at the moment. The short-term bias is bearish as price trades below both the 50-day and 100-day Exponential Moving Averages (EMAs), which continue to trend lower and cap recovery attempts. Currently, ATOM has dipped below the $1.74 level, underscoring a lack of buying pressure after October’s bounce. The Relative Strength Index (RSI) on the 4-hour chart sits at 36, reflecting persistent and extreme downside pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remains below the signal line in negative territory with a flat histogram, adding further confluence to a weak momentum backdrop rather than an impulsive selloff. If the bulls regain control and push ATOM’s price higher, the first major resistance would be $1.83. The next major resistance coincides with the 23.6% retracement at $1.90, and could cap further upward movement. The stronger resistance is from the 38.2% retracement at $2.05. If the daily candle closes above $1,90, it would open the way toward the descending 50-day EMA near $2.05, where sellers would be expected to come out in full force. However, if the bearish trend persists, the $1.70–$1.72 area would act as the initial support before the sellers retest the $1.65 region. Breaking the $1.65 support would confirm continuation of the broader downtrend. As long as ATOM trades below $1.83, the sellers would remain in control and could face further downward pressure. The post Will ATOM retest the $1.65 February 6 low? Check forecast appeared first on Invezz
