ATOM Technical Analysis: Cosmos Shows Signs of Bullish Reversal
Table of contents
Similar to other crypto markets, ATOM also witnessed a tremendous price rally last week before witnessing a collapse. ATOM touched its 40-day high of $15.71 on November 5, which the token last time hit on September 23, but could not sustain the performance for more than 2 days and lost most of its gain. ATOM has dropped 13.35% in the last 24 hours and 15.08% in the past 7 days. The token is 74.49% below its all-time high of $44.70.
With a current price of $11.39, ATOM has a market capitalization of $3.3 billion. While the token’s 24-hour low is $11.28, its daily high stands at $13.97. There are 286.4 million ATOM tokens in circulation.
Key Points-
Source: Tradingview
ATOM Technical Analysis
ATOM's price moving below its 200-day SMA indicates a strong downtrend in the market. However, as the gap between the 200-day SMA and 50-day SMA widens there is little chance of early recovery. With the price action starts making high lows as ATOM takes support above $11.065, the chances of a bullish reversal become quite firm. The daily chart shows that despite the coin coming under selling pressure, it showed signs of recovery when RSI dropped beyond the oversold zone.
Technical Indicators
With RSI slope moving below the 50% level after making multiple divergences around 60% signifies the selling pressure, with the movement of the 14-day SMA above RSI confirming the downtrend. MACD and signal lines give a bearish crossover as both lines move below the halfway line with the histogram already in a negative trend.
Technical analysis of ATOM displays an outright bearish trend confirmed by the moving average with a 50-day SMA moving below the support level, as price action show some sign of a bullish reversal.