Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice.
After reaching ATH on January 7, Cosmos (ATOM) bears intervened to apply consistent pressure. Gradually falling below the trendline resistance (previous support) over the months has given sellers the power they need to turn the trend around.
ATOM is currently in a tricky place. 23.6% Fibonacci resistance has the potential to reshape the orbit of short-term trends. At the time of the press, ATOM was trading at $ 11.67, up 3.08% in the last 24 hours.
ATOM Daily Chart
Due to the recent bearish phase (from the April highs), Alto lost more than 71.4% of its value and plummeted to its 10-month low on May 12. Below the eight-month trendline support, the seller’s favor has turned around. Therefore, they have discovered new selling pressure to fuel a bearish fire.
Due to the dip, alt fell below 20-50-200EMA in the daily time frame. Alongside Fibonacci’s resistance, the 20 EMA curbed all bullish revival efforts last month. With the recent high rejections at the 23.6% level and the widening gap between the EMA ribbons in mind, bears claimed to have an excellent advantage.
A series of candles on the Point of Control (POC, red) can lead altcoin to a short-term tight phase. Below this mark, the path to support at the $ 9.6 level is reopened before the possibility of a bullish comeback arises. Looking at the overly widened gap between 20EMA and 50EMA, the Bulls aim to push further, perhaps after a downturn in the coming days.
The rationale
Source: TradingView, ATOM / USDT
The RSI has revived from this level as it broke the record on May 12 and sought to test the 35 resistance. A reversal from the trend line or horizontal resistance will delay the chances of a resurgence on ATOM’s charts.
CMF took a similar position. It’s well below the Zero Mark Post, but the price difference is bearish, but it has worked in the seller’s favor.
Conclusion
The current devaluation has significantly hampered the ability to buy to drive a large rise. The current bearish pennant setup, along with 23.6% Fibonacci resistance, can be ruined for short-term gains. However, the gap between the 20 and 50 EMAs has widened so much that buyers may aim for a final comeback in the coming days.
Finally, market sentiment analysis that complements these technological factors is essential for profitable moves.
