Cosmos heading to crucial $10.58 – shorting opportunity limited?

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Cosmos [ATOM] has depreciated by over 15%, clearing gains from the recovery in mid-March. ATOM dropped from $13.5 and was operating at the $11 price level at the time of writing. A retest of a crucial support level could offer new buying opportunities at discounted prices. 

Read Cosmos [ATOM] Price Prediction 2023-24

At press time, Bitcoin’s [BTC] value was below $28K and could further exert selling pressure on ATOM to retest this key support level. 

Source: ATOM/USDT on TradingView

After facing price rejection at $15.5 in January, ATOM has weathered selling pressure that has seen it drop to $10.58. Bulls successfully recovered from the $10.58, but the second leg of the rally was interrupted by the obstacle at $13.5. 

ATOM’s retracement could set it to retest the $10.58 support, and a rebound could be likely if the bulls defend it. A pullback retest on the support could offer long positions targeting 50 EMA, 200 EMA, or $13.5.

A close above $13.5 could usher ATOM into the second leg of the rally with a target of $15.5 if the bulls clear the $14.77 hurdle. 

On the other hand, ATOM could depreciate further to $9.57 if bulls fail to defend the $10.58 support. As such, the downswing could offer short-sellers extra shorting opportunities at $9.57 if ATOM closes below $10.58. 

The Relative Strength Index (RSI) retreated from the upper ranges and fluctuated below the 50 mark, showing buying pressure declined. Similarly, the Average Directional Index (ADX) dropped, suggesting a likely further retracement or consolidation. 

Source: Santiment

According to Santiment, funding