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The ATOM coin price retraces and rests after reaching the bullish target of $44 before starting another bull run to break above $50.
The ATOM token is the native currency of Cosmos, and it can be earned by staking into the network. Cosmos offers an ecosystem of connected blockchains to replace the older versions of blockchains that use Proof-of-Work (PoW) consensus protocol like in Bitcoin.
Let us move ahead to read about the Cosmos technical analysis.
Past Performance of ATOM
In our previous ATOM Technical analysis, the coin price was retesting $34, and a bull run was predicted to $44 post-retest. The coin price reached $44 on 4th January, however, the price failed to sustain and a retracement to $38 was seen.
Nonetheless, the price showcases a rise in the buying pressure and aims to overcome the selling pressure at $44 to reach $50.
ATOM/USD Daily Chart
ATOM Technical Analysis
ATOM coin price hinges between key horizontal levels, fallout below this range can prove fatal. Moreover, the higher price rejection seen in the previous daily candles indicates an increase in selling pressure.
The RSI indicator at 67% maintains a sharp uptrend to reach the overbought zone in the daily chart. However, the new peak formation haunts a bearish divergence that can lead to a downfall below $38.
The MACD indicator reflects an amazing uptrend in the MACD and signal lines while maintaining a decent gap. However, the weakness in histogram trend shows the bulls are losing trend control.
Upcoming Trend
If the prices rise above $44, then a phenomenal uptrend can reach the psychological mark of $50. Traders can find the breakout as an entry opportunity to ride a new trend as the crypto market recovers from the bloodbath.
However, the slow and steady rise in underlying bearishness threatens the fallout of $38. The fallout can lead to a correction wave of more than 20%. Therefore, traders must wait for the price action confirmation to avoid any traps in the chart.