Since 2022, the Cosmos (ATOM) price has witnessed sharp selling and has lost around 90%. The ATOM price has lost the main support zone of $6 and has remained below the 200-day EMA. The price has dropped to another support level of $4. Buyers have shown interest in this zone and the price has exceeded the 20-day EMA.
In the short term, the ATOM price has declined through a descending channel and the bearish trend has paused near the $4 level. It has triggered a breakout from a descending channel and has surpassed the 50-day EMA. The price has initiated a V-shaped recovery, can it continue further?
Is the ATOM Price Ready to Fly?
Abitak (@Abitakk) is a cryptocurrency analyst who claims the Cosmos price has potential to shoot up. The price is about to take a U-turn according to his opinion.
https://x.com/Abitakk/status/1838706941230457085
ATOM has formed a beautiful chart structure. In a monthly time frame, it generated a lower-low swing and might gain some momentum. It has formed a hammer candlestick that might attract buyers for a bullish momentum.
Technical Analysis of ATOM Price Over 1-D Timeframe
When writing, the Cosmos crypto was trading at $4.81 which has remained neutral in the past 24 hours. The market capitalization was $1.87 Billion and the 24-hour trading volume was $153.90 Million.
According to the chart structure, the price has swept the liquidity below the major support level of $6. After the liquidity, the price may witness strong buying pressure.
The Cosmos crypto price has exceeded the 20-day EMA and is heading toward the 200-day EMA. If the price manages to sustain over the 50-day EMA, it could invite buyers. If the trading volume supports this momentum, the price might perform positively and may witness a sharp recovery.
On the other hand, if the digital asset price slips below the 20-day EMA, sellers may dominate. Once the price renters the channel, sellers may show interest in the lower low swing and go with the flow of the trend. Suppose the price loses the major support level of $4, sellers may eye for a new all-time low (ATL).
Turning to the technical indicators, the RSI has shown a bullish divergence which could attract buyers. RSI is at 60 which has witnessed sharp recovery and is heading toward the overbought zone. The MACD has lifted to the positive zone and the histograms have remained green.
ATOM Price Analysis Based on Technical Chart
Based on the technical analysis of the ATOM price over a 1-day timeframe, it seems that the ATOM price has shown signs of a potential V-shaped recovery. The price has initiated a breakout from a descending channel and has surpassed the 50-day EMA. Additionally, the RSI has shown a bullish divergence, which could attract buyers.
If the price manages to sustain its momentum and attracts buying pressure, it may witness a sharp recovery. On the other hand, a slip below certain EMA levels or key support levels could invite selling pressure.
