ATOM Technical Analysis: Breakout of 50% Fibonacci Level Can Drive Prices Lower
The ATOM coin price is under extreme selling pressure as the $30 support zone collapses to halt the downfall.
Cosmos introduces itself as a platform to solve the most challenging problems facing the blockchain industry. By presenting an ecosystem of coupled blockchains, it intends to offer an alternative to the proof-of-work protocol, which drives Bitcoin, the most prominent cryptocurrency.
Past Performance of ATOM
After being trapped between a range from $30 to $43, the ATOM coin price gives a fallout below the range. Furthermore, the increased selling pressure results in a 10% fall leading to a bearish engulfing candlestick. Moreover, the candle breaks below the support zone near the $30 mark.
ATOM/USD Daily Chart
ATOM Technical Analysis
The rising downtrend momentum gives a fallout below the 50% Fibonacci retracement level in the daily chart. Thus, a downfall to the 61.80% level at $23 is possible.
However, the fallout of the $28.5 Pivot Point indicates a decline to the $20 mark. Moreover, the $37 and $45 levels above the coin price await a bullish reversal.
As the slope touches the boundary of 30%, the RSI indicates the coin is oversold. Hence, a bullish retracement is in order.
The falling MACD and signal lines below the zero-mark deeper in the negative zone in the daily timeframe. Hence, the MACD indicator gives a sell signal.
As the ATOM prices fall below the crucial support zones, the technical analysis of Cosmos indicates a downfall to the $23 mark. The MACD indicator gives a selling signal; however, the RSI showcases saturation in the falling pressure. Hence, safe traders must wait for the prices to close below the 50% Fibonacci level before taking a short position.
Also, the price action indicates solid support levels at $17 and $9 and the resistance levels at $38 and $44.
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