Cosmos (ATOM) Faces Pressure From Both Resistance and Support!

When we talk about cryptocurrency, one of the most basic thoughts we have is the mining process. The process of using shared computer processing resources to solve blocks and validate cryptocurrency was a revolutionary idea at the beginning. But with changing times, there is a serious requirement for a network of smart blockchains capable of interacting with the million others already working there.

Popularized as Blockchain 3.0, modularity and the ability of crypto networks to communicate with other blockchains make it one of the most aggressively scaling crypto networks. ATOM had grown from its initial ICO days of 2017, when one ATOM token was worth $0.10 in valuation, to the latest traded value of $37.69 in October 2021. 

ATOM now holds its position among the top 25 cryptocurrencies with a market capitalization of over $8.31 Billion and a total circulating supply of 222 million coins. However, fluctuations in its value over the last one week have suppressed the price movement within 1% of the movement. 

ATOM Price Analysis 

Cosmos is the blockchain, and ATOM is the cryptocurrency token for validating the transactions of the Cosmos network.

Cosmos has jumped from the lows of $8 to $44 in a matter of fewer than three months. While the initial rally was much easier to track, the recent turbulent movements have weighed in heavily for cryptocurrencies. For example, the ATOM price fell more than 35% in just two days, and despite facing heavy selling, pressure bounced back towards its recent highs of $40. But second profit booking from the same level has made it clear that people are booking their 5x profits at $40 levels. 

ATOM Cosmos has provided a great price movement and multiple re-entries for enthusiastic buyers. Since the September 07 profit booking that ensured the emergence of a bearish trend has in turn been beneficial for the ATOM token holders since its value rose almost 3X from $16 to $44. Moreover, ATOM has been closely taking support from its 200 days moving average of $20 and upside trend line. 

RSI indicator has been strong ever since the rise of buying sentiment since the mid of July 2021. It has now marked fresh highs despite witnessing a profit booking on higher levels. Since September 07, the ATOM token has taken support from its trend line on not just one or two instances but a total of four instances, indicating the powerful buying sentiment at correct valuations.

ATOM token has been under a profit booking sentiment since hitting the peak of $41 on October 03, 2021. The ensuing sentiment shift has pushed down the value of ATOM to more than 10 percent in just two days. $36.445 has emerged as a strong contender for hindering the profit booking sentiment as per our Cosmos price prediction. 

There is a weak but developing flat bottom pattern with declining highs at each hour and consistent support at lower ends. At its current value, RSI is trading above 50 on the histogram, indicating small positive sentiment.

   
Source