en
Back to the list

Cosmos Price Analysis: ATOM Dropped below an Interesting Pattern, What’s Next?

Analytics

www.thecoinrepublic.com 03 October 2022 07:12, UTC
  
Reading time: ~3 m

  • Cosmos price has been rising through an ascending parallel channel over the daily price chart.
  • ATOM crypto is trading at 50 and 100-daya DMA but still below 20 and 200-days Daily Moving Average.
  • The pair of ATOM/BTC is at 0.0006729 BTC with an intraday gain of 0.74%.

The price of Cosmos is attempting to ascend through an upward channel over the daily price chart. The coin is currently advancing as it approaches the upper trendline of the channel. ATOM currency needs to keep up its current momentum in order to recover and break past a critical barrier level. ATOM bulls need to keep the token in the ascending parallel channel in order for it to rise bullishly and break out. However, bears are making an effort to short the ATOM market. It is more challenging for cryptocurrencies like ATOM to successfully rebound during a bear market. Investors in ATOM must wait until bulls maintain their position at the top trendline of the rising parallel channel.

The current expected market price for Cosmos is $13.00, which is 0.83% less than the closing price from the previous day. However, transaction volume decreased by 15.62% during the intraday trading session. This demonstrates that the game is being played better by the bears who are attempting to pull the token than by the bulls. Volume to market cap ratio is 0.08725.

Source: ATOM/USD by TradingView

The price of ATOM coin needs to lure more buyers in order to speed toward the lower trendline of the ascending channel to acquire back its position inside the channel. But as the volume variation shows, the bears are trying to stockpile for a pullback of the ATOM currency. The ATOM coin price must increase toward the lower trendline in order for its recovery phase to be seen on the daily price chart.

What do Technical Indicators Suggest about ATOM?

Source: ATOM/USD by TradingView

On the daily price chart, ATOM Crypto is monitoring its recovery via a rising parallel channel. The token must continue to move inside the channel and push past the allowable resistance level to maximize recovery. Technical indicators suggest that the downward momentum of the ATOM coin is still present.

The relative strength index shows the decline of the ATOM coin. The RSI crosses the oversold zone as it leaves neutrality. The MACD for the ATOM coin shows a bearish momentum. The MACD line is lower than the signal line after negative crossover. Investors in ATOM need to keep an eye on the daily chart for any changes in trend.

Conclusion

The price of Cosmos is attempting to ascend through an upward channel over the daily price chart. The coin is currently advancing as it approaches the upper trendline of the channel. ATOM currency needs to keep up its current momentum in order to recover and break past a critical barrier level. ATOM bulls need to keep the token in the ascending parallel channel in order for it to rise bullishly and break out. However, bears are making an effort to short the ATOM market. It is more challenging for cryptocurrencies like ATOM to successfully rebound during a bear market. The ATOM coin price must increase toward the lower trendline in order for its recovery phase to be seen on the daily price chart. Technical indicators suggest that the downward momentum of the ATOM coin is still present. The MACD line is lower than the signal line after negative crossover. Investors in ATOM need to keep an eye on the daily chart for any changes in trend.

Technical Levels

Support Levels: $12.50 and $11.50

Resistance Levels: $14.00 and $15.00

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.  


   Source
Back to the list