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Vikram
Apr 29, 2022
by Vikram

ATOM Technical Analysis: Falling Channel Warns $20 Fallout

ATOM
ATOM coin price shows a downtrend in a falling channel pattern, ready to break the $20 support level and reach the $18 mark. 

Key technical points:

  • ATOM prices attack the $20 mark.

  • The 100 and 200-day EMA are ready for a bearish crossover.

  • The 24-hour trading volume of Cosmos is $460.82 Million, reflecting a decline of 9.20%. 

    • Past Performance of ATOM

    ATOM coin price fails to recover the bullish trend after breaking below the psychological mark of $25. After the breakout, the downtrend continues in a falling channel pattern accounting for a 20% fall and reaching the $20 mark. 

    TradingView Chart

    ATOM Technical Analysis 

    ATOM coin price action shows a weakness in the trading volume, reflecting a lack of bearish commitment to the downfall. Hence, the reversal possibility from the support confluence of the trendline and the $20 level increases. 

    Ready to achieve a bearish alignment, the falling trend of the crucial 100 and 200-day EMA prepare a bearish crossover. Hence, the indicator projects a high possibility of a downtrend continuation. 

    MACD Indicator: The fast and slow lines maintain a declining trend lower than the zero line, which is a sign of a bearish trend in place. The MACD histograms indicate an upward trend, which suggests the possibility of a strong downtrend. 

    RSI Indicator:  The RSI slope displays an increasing trend in bearish power as it gets closer to the oversold limit within the 14-day SMA influence

    In a nutshell, the ATOM technical analysis indicates a much more likely possibility of the support trendline fallout. 

    Upcoming Trend 

    ATOM coin price action forecasts a breakout rally below the $20 mark, ready to reach the $18 support as the EMAs are on the verge of achieving the bearish alignment. But, the chance of a reversal is substantial to trap sellers within a bull cycle. To avoid falling into the trap, traders should be patient and wait for a close lower than $20 before attempting to ride the downtrend until $18.

    Support Levels: $20 and $18

    Resistance Levels: $22.5 and $25

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    ATOM Cosmos
    ATOM Technical Analysis: Falling Channel Warns $20 Fallout
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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