Cosmos (ATOM) Stumbles at $12 Mark to Repeat Negative Trend!
Cosmos blockchain can be considered a gateway to solving future and upcoming networking problems in inter-connected blockchains or different blockchain ecosystems. Cosmos is a popular SDK service provider, one that enables developers to create modular blockchains with their own validation system and cryptocurrency.
Even its Inter Blockchain Communications (IBC) protocol enables a steep climb towards blockchain interoperability. Despite a large number of crypto projects utilizing this tool, ATOM prices have remained negative because of the limited utilization of this token in other blockchains developed using Cosmos SDK.
Despite its challenges, ATOM has attained the 26th rank with a market capitalization of $3,030,893,572. The use of ATOM tokens is currently limited to internal transactions, staking for earning higher rewards, and governance voting in the cosmos blockchain. Once expanded to the SDK solutions, ATOM can witness a rising demand for its tokens.
ATOM undergoes a massive profit booking to the tune of 12% after facing a rejection near the 100 EMA curve. The technical indicators confirm the beginning of a bearish trend; while this trend could be short-lived, the shock on sentiment for buying ATOM tokens will take a huge hit. To get a more detailed analysis, check out our Cosmos price prediction.
The Cosmos profit booking we are witnessing has been underworking for the last week. As the ATOM token underwent a massive consolidation near its important outlook of 100 EMA, the prolonged consolidation created a selling demand for ATOM tokens. RSI shows a downtrend of buying sentiment compared to the last two weeks.
Support was created during the last week of July near $8.5, which should ideally prevent the fall of value further below this level. The immediate support is decently below the current trading values, while the immediate resistance is also quite above the current value of $10.48.
The MACD indicator has confirmed the beginning of a bearish crossover with the outlook for consolidation in the negative tier. There is a small buying action visible at the lower band of $10.5, which is confirmed by the formation of a wick at its bottom.
The outlook on Cosmos price charts is not yet negative since the trendline created after hitting the low of $5.5 on June 18 remains intact. Besides, immediate support can be seen developing near $9.6, which could initiate a bounce back of ATOM values.
The weekly chart of Cosmos confirms the initiation of a bearish trend correcting the gains made previously. Enthusiasts would expect a similar outlook as the previous week, where ATOM prices returned to opening value creating an uncertain price trend with buyers and sellers returning with strength. Although RSI is showcasing a weaker price action, MACD hasn’t yet given up on its bullish expectations.
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