ATOM witnesses short-term bearish bias, can the buyers reverse the downtrend

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Cosmos [ATOM] was in the grip of a strong downtrend on the price charts. A look at the futures market also showed that the selling pressure had not yet abated. Being a weekly open, the 3 October high and low could be important levels for traders over the next week

. Hence, even bearishly biased market participants might want to wait for the 3 October levels to be established.

Source: ATOM/USDT on TradingView

A lower timeframe chart showed a bearish market structure for ATOM. On higher timeframes such as four-hour and daily, the downtrend was visible as well. This meant traders can look for shorting opportunities to trade with the trend. The Relative Strength Index (RSI) has been below the neutral 50 mark for most of the past week. This highlighted steady downward momentum behind the price.

The Accumulation/Distribution (A/D) line had also been on a strong downtrend over the past ten days, to highlight heavy selling pressure. Sellers were in the driving seat, and they were unlikely to vacate in a hurry.

The price action showed the $12.4 region act as a short-term support over the past few days. Once this zone gave way, ATOM was quick to push as far south as $11.97. Hence, a retest of this zone would likely offer a selling opportunity. Invalidation of this bearish notion would be an hourly session close above $12.6. Bearish targets include $11.7 and $11.15.

Source: Coinglass

Toward the final week of September, Open Interest began to rise as the price ranged between the $14.7 and $13.7 levels. However, once the $13.7 level failed to hold as support, the OI shot upward. In the past few days, the OI