- Cosmos price prediction unwinds the details of the sinking price of ATOM token
- The ATOM crypto price reported a loss of 13.45% over the past one year
- ATOM token price has developed a descending channel that could unlock a reversal
Cosmos’s (ATOM) price prediction shares the details of the tumbling prices of the ATOM token, which has been under bearish grips since February 2023. The price surged by 81.7% from its swing low of $8.621 all the way to the resistance of $15.428. It was followed by a rejection, which caused the price to tumble by 53%, and the market bottomed out at $7.00 before its recovery. This forced the Atom Crypto price to break the key support level of $8.621. However, the bulls came to the rescue and managed to recover the price to its current level.
At the time of writing, the current market price of Cosmos is $8.953. The 24-hour trading volume plunged 24.85%. The market is up by 9.56% in the last 24 hours. The overall market cap of ATOM is $3,101,867,887.
Can ATOM Crypto Hit the Target Price of the Descending Channel?
Cosmos’s (ATOM) price prediction reveals that the Atom Token price is moving in a descending channel on its way down. The market is trading below the 200 EMA, which is a sign of bearish dominance. The sliding prices create panic in the market, where investors get trapped by buying the ATOM token at higher prices.
The bulls bought the dip and bounced the price by 39% to the resistance level of $10.149. However, the sellers maintained a strong grip and pushed the price back to its local support level of $8.931. Meanwhile, the descending channel pattern could be a key for a reversal, as a good breakout can spark a bullish rally to the upside.
The Short-Term Points At A Sideways Market
The 4-hour chart reveals that the ATOM token price is trading in a sideways price action while moving around the 200 EMA. Also, the market has lost momentum while volume declines. The ATOM token price is struggling to maintain the lower support level of $8.935 after reversing from the local resistance.
It indicates that the buyers are showing weakness and the sellers have identified it. The volume is also declining with the price, which is a signal for the upcoming volatility. At present, the weakness of the market is pointing at a more bearish scenario unless the price breaks the descending channel pattern.
RSI
The RSI indicator is currently at 44.53. It represents bearish conditions where the price may continue to fall until RSI goes above 50. Aggressive selling may happen only if RSI goes below 30.
MACD
MACD has made a bullish crossover below the 0 line. This is an indication of a bullish momentum and the price may rise until the MACD makes a bearish crossover.
200 EMA
On the 4-hour chart, the price is below the 200 EMA. This means that the market is bearish with the control of the sellers. The 200 EMA acts as a dynamic resistance, and the price may decrease until it succeeds the 200 EMA
Conclusion
Cosmos’s (ATOM) price prediction shares the details of the tumbling prices of the ATOM token, which has been under bearish grips since February 2023. The price is trading in a range, which makes it uncertain about the direction of the market until the price escapes the range. Therefore, investors should exercise caution and wait for the price to make a sustained breakout of the descending channel before opening new buy positions. Until then, use proper risk management to keep losses in check.
Technical Levels
- Support Level: The nearest support level is $8.935
- Resistance Level: The nearest resistance level is $10.149
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.