"Is it advisable to engage in short-selling of Atom coins today?"

Answered at Oct 18, 2024

Engaging in short-selling Cosmos (ATOM) coins today requires a careful analysis of current market conditions and future predictions. This report will guide you through the key factors influencing the decision to short-sell ATOM.

Current Market Overview

As of October 18, 2024, the price of Cosmos (ATOM) is $4.33, with a 24-hour trading volume of $122.91 million. The market has seen a decrease of 2.32% in the last 24 hours, indicating a bearish trend (CoinDesk).

Technical Indicators

  • Relative Strength Index (RSI): The RSI is at 46.68, suggesting a neutral market position. However, on the weekly chart, the RSI is at 27.20, indicating an oversold condition (CoinLore).
  • Moving Averages: The 200-day Simple Moving Average (SMA) is expected to drop to $6.46 by November 16, 2024, while the 50-day SMA is estimated to hit $4.35 (CoinCodex).

Price Predictions

Short-Term Forecast

  • October 2024: The price is projected to range between $3.74 and $4.37, with an average of $4.07. This represents a potential decrease of 2.83% from the previous month (CoinCodex).
  • December 2024: ATOM is expected to trade between $3.90 and $4.34, suggesting a potential profit of 10.10% for short sellers if the price follows the prediction (CoinCodex).

Long-Term Outlook

  • 2025: Cosmos is forecasted to trade between $4.35 and $22.07, with an average price of $12.16. The most bullish month could be September, with a potential increase of 409.15% (CoinCodex).
  • 2031: Models project ATOM to average over $10, with a potential to exceed $20 in the 11-year trajectory (AMB Crypto).

Market Sentiment and Strategy

Bearish Sentiment

The short-term sentiment for ATOM is bearish, with 13 out of 17 technical indicators suggesting a sell (CoinLore). The primary resistance level is at $5.14, and the bottom support is at $3.63. If the price falls below this support, further declines are possible.

Short-Selling Strategy

Short-selling ATOM could be profitable in the short term, given the bearish market sentiment and technical indicators. Traders can leverage futures contracts on platforms like Binance, allowing for up to 50x leverage (Coin.Guru).

Conclusion

Based on the current market conditions and technical analysis, short-selling ATOM appears to be a viable strategy in the short term. The bearish sentiment, coupled with technical indicators pointing towards a potential decline, supports this approach. However, traders should remain cautious and monitor market trends closely, as the long-term outlook for ATOM shows potential for recovery and growth. Always consider the risks and conduct thorough research before engaging in short-selling.