Cosmos Price in Range : ATOM Price may See Upward Range Expansion

Cosmos price recovered almost 30% from the recent swing low at $10.300 and showed initial signs of bullish trend reversal. ATOM price formed a bullish hammer pattern from the demand zone and started rising upward, but the price is near the 50 day EMA and is facing resistance.

ATOM price is currently trading at $12.452 (at press time) with an intraday gain of 0.29% and 24 hour volume to market cap ratio at 0.0834. The pair of ATOM/BTC is trading at 0.0005100 with an intraday loss of -0.22%. At the beginning of January, ATOM crypto price managed to climb above the 50 day EMA which turned the short term trend in the direction of bulls. Later, ATOM price began the upward momentum by forming higher high swings and rallied around 50% in one month. However, the rally halted at the pre-FTX collapse level at $15.472. The bulls were unable to give the follow up momentum. Therefore, $15.472 acts as an immediate hurdle for the bulls followed by the next hurdle at $17.229.

Cosmos Price Might Reach $17.00

Cosmos price consolidated for a few days. However, overall market sentiment turned negative after which ATOM price reverted in a downward direction. In early March, ATOM price slipped below the 50 and 200 day EMA which invited further selloff and prices lost almost 90% of their previous gains. However, recently ATOM price bounced back. Rising buying volume shows that responsive buyers are still active at the lower levels.

Cosmos price seems to be stuck in the wide range between $10.00 to $15.00 and likely to see upward expansion if it sustains above the 200 day EMA. Till then it is expected to trade sideways with a low momentum. ATOM crypto technical indicators like MACD had generated a fresh positive crossover indicating bullishness to continue for some more time.

The RSI at 51 sloping toward the neutral zone indicates a balance between bullish and bearish positions. Technical analysis suggests that ATOM price is in the initial phase of bullish trend reversal and if overall market sentiment improves, then ATOM price might reach $17.00. However, if ATOM price gets rejection from the 200 day EMA, then $10.00 will act as a strong support level for the bullish traders.

Conclusion

Cosmos price recovered 30% from the recent low indicating that responsive buyers are active in the demand zone. Technical analysis suggests ATOM price might gain positive momentum only if it holds the 200 day EMA. Till then, prices are expected to trade in a narrow range.

Technical levels

Resistance levels : $15.472 and $17.229

Support levels : $10.00 and $8.486

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.