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Well-known crypto trader and analyst Ali Charts, shared on Twitter earlier today that Cosmos (ATOM) was ready to break out of a falling wedge pattern on its hourly chart. This could be an extremely bullish sign for the altcoin as the trader pointed out that it could lead to ATOM’s price rising by more than 7%.
$ATOM also looks ready to pop! 🚀 GN pic.twitter.com/o2BndLovgk
— Ali (@ali_charts) July 19, 2023
However, the daily chart for ATOM was less bullish than the 1-hour chart mentioned in Ali Charts’ post. At press time, the 9-day EMA line was attempting to cross below the 20-day EMA line. Should this cross happen, it will indicate a short-term trend change for ATOM from bullish to bearish.
If this potential bearish technical flag is validated, then ATOM’s price may be at risk of dropping to the next key support level at $8.904 in the coming 24-48 hours. Continued sell pressure may push the cryptocurrency’s price below this mark to as low as $8.10 in the following week.
On the other hand, ATOM closing today’s daily candle above the 9-day and 20-day EMA lines today may invalidate the bearish thesis. In this scenario, the breakout forecasted by Ali Charts may occur. This could elevate the altcoin’s price to above the $9.524 resistance to potentially challenge the $10.01 resistance as well in the next few days.
Meanwhile, CoinMarketCap indicated that ATOM saw its price drop slightly by 0.31% over the past day of trading. As a result, the altcoin was worth approximately $9.34 at press time. This price drop was enough for ATOM to weaken against both crypto market leaders Bitcoin (BTC) and Ethereum (ETH) by about 0.37% and 0.63% respectively.
Throughout the past day, ATOM’s 24-hour trading volume fell by more than 20%, which left it standing at around $72,226,641. Although ATOM’s price slipped a bit over the past 24 hours, the altcoin’s weekly performance was still up by just over 1%.
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