ATOM Technical Analysis: Price Resonates Within Range

The continuation of the long consolidation range in the ATOM daily chart indicates the arrival of a huge breakout move shortly.

Cosmos is described as “Blockchain 3.0.” The ecosystem not only features smart contract functionality but also offers a safe and highly secure system of transaction and trading with no middlemen involved.

As Cosmos-based DEX Osmosis raises $21M from a consortium of investors, we can shortly see a surge in the number of ATOM token buyers.

Let us now take a look into the technical analysis of Cosmos.

Past Performance of ATOM

Currently, the ATOM coin price moves within a consolidation range. The range is in effect after the supply dump met near the $44 mark. The recent jump in coin price on 26th Oct increased the hopes of a bullish breakout. However, the solid supply zone resulted in a bearish reversal.

Source — Tradingview

ATOM Technical Analysis

At press time, the ATOM coin price was trading at $38.82, with a price fall of 0.71% in the past 24 hours. Furthermore, the intraday trading volume stands at $870 million, with a fall of 50%.

If the price breaks above the $44 mark, the coin price can face opposition near the $51 and $65, as per Pivot Points. However, if the price falls below the $30 mark, the following support level is at $25.

The RSI indicator is slightly above the central mark. However, the slope rises higher with a sharp recovery. Hence, the RSI gives a neutral sign in the daily chart.

The MACD and the Signal line rise higher after the recent bullish crossover. Moreover, despite the recent fall, the histogram is bullish. Thus, resulting in a bullish divergence. Hence, the MACD indicator generates a buy signal for ATOM coin price.

Upcoming Trend

As per the technical analysis of Cosmos, the ATOM coin price is fighting against a bearish attack. The ongoing bullish retracement fights to reinstate the bullish trend. However, the weakness is evident by the long wick formation. 

Hence, traders can wait till a bullish breakout to avoid any fallouts.

   
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