ATOM Might Trade Below Its Immediate Support Level Despite A Recent Rally
ATOM had displayed optimistic price action recently after the coin rallied close to 14% a little over 48 hours ago. The coin had managed to undo the loss of 21% that it incurred in the past week with its recent rally.
Bearish sentiments are still present across the whole industry and altcoins have also walked along the same price sentiment. Ever since ATOM revisited its all time high in the month of January this year, the coin has struggled to release itself from the grasp of the bears.
At the time of writing, Cosmos (ATOM) was the 28th biggest crypto by market capitalisation as seen on CoinGecko.
Bitcoin again slid below the $30,000 mark while Ethereum struggled to trade above the $2000 price level. The global cryptocurrency market cap today was at $1.32 Trillion after a fall of 4.6% in the last 24 hours.
ATOM Price Analysis: One Day Chart
Cosmos (ATOM) was trading at $10.57 on the one day chart | Source: ATOMUSD on TradingView
Cosmos (ATOM) was trading for $10.57 at the time of writing. Gradual push from the bears have caused the digital asset to trade below its resistance lines. At press time, the coin was trading close to its immediate support level because the market received a fall in buying strength.
Over the last 24 hours, the altcoin registered a sharp fall by 9% forcing the coin trade near the local support.
Immediate resistance for ATOM stood at $13.73 and to trade above the same ATOM would need support of the buyers. Volume of the coin traded depicted bearishness which indicates selling momentum rising in the market.
Cosmos (ATOM) remains oversold on the one day chart | Source: ATOMUSD on TradingView
Cosmos (ATOM) invalidated its 8-month long resistance line and that caused sellers to lose confidence on the asset. The coin was trading below the 20-SMA line which meant that sellers were in control of the price momentum.
If the coin continues to remain below the 20-SMA line then a bullish revival remains tough for the altcoin. If buyers find a way back into the market then the coin can attempt to trade near the $13 price mark.
A rejection from the aforementioned price level will push the coin beneath the $9.42 support level. The coin traded near the $9.40 level last year in the month of July.
The Relative Strength Index displayed an uptick because the indicator was seen above the oversold region. Despite recovery, ATOM continues to remain under heavy selling pressure.
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Cosmos (ATOM) displayed increase in capital inflows on the one day chart | Source: ATOMUSD on TradingView
Cosmos (ATOM) had staged a brief recovery and following that indicators reflected some bullishness. It is too early to say if the altcoin will continue moving in the same direction. Awesome Oscillator depicts the price momentum in the market.
The indicator displayed green histograms underneath the zero-line, this reading signifies a sell signal. If sellers act on the sell signal, price could dip further causing the bears to strengthen.
Chaikin Money Flow was under the half-line, although the indicator noted an increase in capital inflows over outflows. Despite increase in capital inflows, ATOM’s capital outflows precede its inflows.
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