Cosmos (ATOM) has maintained a very bullish sentiment on the charts in the crypto space; Despite many problems in the market, Cosmos (ATOM) recovers with good volume and rallies high. The price has encountered resistance on the weekly chart and has shown weakness that there are many doubts if the price can recover the price of $20. (Data from Binance)
Analysis of the price of Cosmos (ATOM) token on the weekly chart
ATOM, despite its good fundamentals, is more than 70% off from $45 to $6. The price of ATOM increased after touching the weekly low of $6, and the price rose to $17, showing some good strength.
The price of ATOM on the weekly chart showed a high strength to $17 with a strong tone, but the price met a high resistance at $17 on the weekly chart. ATOM is unable to turn this weekly resistance into support as the price is declining but above the impressive trendline support.
For ATOM price to turn higher, it needs to turn its weekly resistance to support and close above $17. If ATOM price fails to return to this range, we could see ATOM price test the $12 support.
ATOM price may test the weekly support of $12, which is a healthy rebound. Until now, the support of that region protects the price of ATOM from selling, and this is a good zone for more buy orders, and the price aims to maintain its high sentiment. If the price of ATOM does not hold the $12 support, we could see the price move lower to $8.
Weekly resistance for ATOM price – $17.
Weekly support for ATOM price – $12.
ATOM price analysis on daily (1D) chart
Despite a lot of selling, the price is holding up well as it respects the trendline support, continuing the large structure that formed the daily timeframe for ATOM prices.
ATOM price needs to hold above this transition line support for the price to go higher and higher, but if ATOM price fails to hold, we could see ATOM price drop to $12.5 on a daily basis.
On the daily timeframe, ATOM price is currently trading at $13.56, holding above the 50 Exponential Moving Average (EMA) which serves as support for ATOM price. The price of 12.5 dollars corresponds to the support at the 50 EMA, which serves as a good place for more interest in the price of ATOM; If the support at the 50 EMA fails, we could see the price move towards $9.
ATOM’s Relative Strength Index (RSI) is above 50 on the daily chart, indicating low buying volume.
Daily resistance to ATOM price – $15.
Daily support for ATOM price – $12.5-$9.
Featured Image From zipmex, Charts From Tradingview