Cosmos (ATOM) struggles To Stay Bullish, Is $20 Still Possible?

Cosmos (ATOM), which has been a strong bullish stock in crypto, continues to dominate the charts. Despite pullbacks throughout the market, Cosmos(ATOM) will recover with high volume and move higher. As the price faces resistance on its weekly chart, it has displayed weakness. However, there is still doubt as to whether the price will regain the value of $20. (Data from binance)

Analyse of the Weekly Chart for Cosmos (ATOM), Token Prices 

Source: ATOMUSDT On| Source: ATOMUSDT On

ATOM’s price dropped from $45 down to $6. This is despite the fact that it has strong fundamentals. ATOM saw a rebound after reaching a weekly low at $6. It rose to $17, indicating some strength.

ATOM prices on the weekly charts showed tremendous strength with strong volume rallying up to $17, however the price met major resistance at $17. ATOM’s weekly resistance failed to become support. The price is still falling but has remained above the bullish trendline.

The price of ATOM must move higher to continue trending upwards. We need to turn the weekly resistance into support, close above $17. If the price does not rally to the region we may see ATOM returning to its $12 support.

ATOM’s weekly support at $12 could be retested by the price. This is considered a strong retracement. The support region has held the ATOM price from selling off, so this could be an area for buy orders and possibly a bounce, as ATOM aims to keep its bullish sentiment. We could see ATOM falling to $8 if it fails to maintain $12 support.

Weekly resistance for the price of ATOM – $17.

Weekly support for the price of ATOM – $12.

ATOM Daily Price Analysis (1D) Chart

AtOMUSDT Price Chart Daily | Source: ATOMUSDT On

AtOM prices are still in bullish mode, as they continue to follow the trendline support which holds up well despite having more sales volume. 

ATOM’s price needs to hold above this trendline support for the price to bounce and trend higher, but if the price of ATOM fails to hold, we could see the price of ATOM going to a daily low of $12.5.

The price of ATOM currently trades at $13.56, above the 50 Exponential moving average (EMA), which acts as support. Price of ATOM at $12.5 is the support of 50 EMA. This area could be a source of more demand. However, if support at 50 EMA falls, the price may rise to $9. 

Relative Strength Index for ATOM (RSI), is higher than 50 on the daily charts, which indicates low volume buy orders. 

Daily resistance for the ATOM price – $15.

Daily support for the ATOM price – $12.5-$9.

Featured Image from zipmex. Charts by Tradingview 

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