COSMOS token price analysis: ATOM token price exhibits a strong bullish pressure

The ATOM token price is hovering around the demand zone on a daily time frame.
The ATOM token price is forming a falling wedge pattern on a daily time frame.
The pair of ATOM/BTC is trading at the price level of 0.0005231 with an increase of 3.98% in the past 24 hours.

According to the price action, the ATOM token price is trading ATOM the critical demand level. The token price is currently consolidating. The token price is forming a reversal chart pattern on a daily time frame. With a strong bullish candlestick pattern on the daily time frame, the token price can break through the important supply zone of $10.42.

If the token bounces off the demand zone, the ATOM token price can be seen accelerating to the supply zone. The ATOM token price is currently trading below the blue 50 and 100 Moving Average and 14 Simple Moving Average lines. The token price broke down the demand zone during the previous sell-off which resulted in the breakdown of the important MAs.the ATOM token price can face rejection while moving up from these MAs.

After failing to surpass the upper band , the ATOM token price is currently trading at the lower band of the Bollinger band indicator. At the moment, the Bollinger band range has expanded, indicating a sideways trend in the coming days. Volumes have increased since the token became volatile.

The ATOM token price is forming a falling wedge pattern on a daily time frame

Supertrend: The ATOM token price is trading at the demand zone, after failing to surpass the supply zone. Recent bearishness has resulted in the token price breaking the super trend buyline which was acting as a strong support area. The recent breakdown has resulted in the formation of a super-trend sell line. Moving upwards the token price can be seen facing strong rejection off the supertrend sell line..

Moving Average Convergence Divergence: MACD indicator has given a negative crossover as the token price fell to the demand zone. The blue line crossed the orange line on the downside. This has resulted in the token price falling strongly in a 4-hour time frame. Recently the ATOM token price rose after the breakout of long-term support area as a retest. As of now, the token price has started consolidating again after falling off the supply zone and as a result, the gap between the blue and orange lines can be seen widening supporting the trend.

Average Directional Movement Index: ADX has been continuously falling as the token price broke an important demand zone on a weekly time frame. As of now, the token price is trading above this important demand zone. The demand zone is now acting strong as the token price shows bullishness. At present, the token price is trading in a strong momentum, and if the same continues the token price can be seen moving higher in the upcoming days. ADX curve has turned sideways indicating a halt in the price stricture and possible change in the movement of the token price.

Conclusion: ATOM token price is in a bearish trend on a lower time frame. While on a larger time frame the token is consolidating in a small range. The technical parameters are also seen supporting the trend as they turn bullish. Investors should wait for a confirmation of the breakout of the reversal chart pattern and then act accordingly.

Support: $7.10 and $6.90

Resistance: $10.42 and $13.59

Disclaimer

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