Crypto nugget: Cosmos (ATOM) keeps being pushed to its limits?

In this new Wednesday cryptocurrency, let’s review the ATOM cryptocurrency, which has been in a long decline for 10 weeks now. The goal of the day is to give you a technical analysis of the original assetCosmos ecosystem. Will this project, which consists of creating a network of blockchains, be strong enough over the next few months to bring ATOM to old price levels? The task is not simple, far from it. To see a little more clearly, let’s move on to our graphs.

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ATOM cryptocurrency at its ultimate level

ATOM rate against dollars weekly

Since his all time high at $ 44.7, ATOM continues to fall towards price levels it has not seen since last summer. The trend line, which materialized higher and higher bottom, was broken on the downside, giving the first signal of a strong hold of the sellers. Fast enough, ATOM closed below this year’s key level. This price action confirmed the establishment of a weekly downward trend, which the asset is currently at. However, ATOM is now in its summer 2021 support zone at $ 8.6 / $ 9.

The current challenge is as follows: monitor the price reaction at this level to identify, or not, a reaction from buyers. It is clear that the difference with last summer is the weakness of buyers. While we had witnessed good fights three times to defend this area, the interest seems almost non-existent at present. IN weekly, we can imagine a recovery to correct part of the bearish movement, but after all, this will strongly depend on the macroeconomic context and interest in risky assets.

Since the weekly trend is bearish, it seems preferable to choose a bearish scenario over the next few months, although this is not absolute. The eruption of the support zone, where the price is currently located, past a resistance, may result in a reintegration of the ATOM into the range zone from August 2020 to January 2021. In addition to a return to the pivot zone of $ 5.80, it is entirely possible to get the price to fall to the lower limit, which at the time was $ 4.80. And again, the most pessimistic scenario would be a reintegration of the first range with a return to $ 3. Of course, be sure. We are not there yet, far from it.

An asset in a situation of daily lateralization, but for how long?

ATOM cryptocurrency price against dollars on a daily basis
ATOM exchange rate against the dollar on a daily scale

What we can look at ATOM, it is the relevance of the key levels that we have identified on a weekly basis. Price movements are much easier to understand, so it is necessary to look for patterns in lower time frames. Since April 2022, we can see the formation of lower lows (LL) and lower heights (LH). These are lower and lower ups and downs. So much the more, I remind you, the ATOM is on its great support. More than ever before, buyers need to regain ground if we do not want to see a bigger bearish scenario.

At the moment, ATOM is trading between a recent high of $ 12.49 and a low of $ 8.55. As long as the price moves between these two levels, there will be absolutely nothing significant to report. In fact, this will equate to simple fluctuations throughout the day. Thus, if the price detects a candle above its recent high level, we will have the signal of a potential change in the structure. This can lead to a larger increase in ATOM. In this context, we could consider an optimistic return of $ 17 without breaking the downward trend …

Conversely, if sellers do not get tired and continue to push the price down, beware of a closing below $ 8.55. This will mean a continuation of the downward trend with a new low, while initiating a downward eruption of the weekly support zone. Thus, it will be necessary to monitor the price’s reaction to this time frame. This bearish scenario could initially bring us to $ 6.95. Then, in another step, the ATOM could get in touch with the pivot zone at $ 5.40 / 5.80. And finally, as mentioned above, a return to the lower limit of $ 4.80 should not be ruled out.

Yes, the cryptocurrency is already running out. However, do not worry! You can find us for a brand new analysis every Wednesday! While you wait for next week’s asset, you now have all the key levels in your hands to understand the future movements of ATOM. As it is currently on a large support, the downward trend may lead to an outbreak of the latter. So far nothing has happened yet. Do buyers show up at the last minute? More than ever before, it is imperative to be vigilant on a daily basis in order to determine as quickly as possible the future direction that the asset will take.

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