coinedition.com
Cosmos (ATOM) has been on a roller coaster ride during the past week. Trading at an opening market price of $12.76, ATOM reached $13.67 within a few hours. However, it did not surge straight from its opening market price. The token went through a rugged path of ups and downs before its aforementioned level ($13.67).
Thereafter, ATOM started descending again. Although the bulls were able to slow down the rate of ATOM’s downward movement, the bears were heavy-handed. Hence, ATOM reached the support level close to its opening market price on the first day.
On the second day of the week, the token started rising exponentially, reaching its peak of $13.83 (Second Crest on the chart); thereafter, it started descending. However, this time ATOM was able to recover at $13.01 (Second Trough), much higher than the opening market price.
From there, the token went on to register its highest price of $13.96 on the fourth day of the week. At other times, ATOM started declining after reaching the top. The token made a higher low at $12.92 on the fifth day. Currently, ATOM is on the rise, up 3.36% in the last 24 hours, and as of press time, it is $13.51.
As shown in the chart below, ATOM has been fluctuating in a bearish rising wedge recently. More importantly, ATOM has been following the Bollinger bands very closely. The market corrected the price at every instance when the token either reached the upper or lower Bollinger band. As of present, the market corrected ATOM’s price after it touched the lower Bollinger band.
ATOM is now reaching the upper Bollinger band. Will the market again correct the ATOM if it hits the upper Bollinger band? Or will the bulls be strong enough to break above the upper Bollinger band?
Contrastingly, if the bears take over the market, ATOM could tank to support 1. However, the 200-day MA seems to be interjecting. However, it is questionable whether the 200-day MA can sustain ATOM before tanking to support 1.