ATOM price has been testing its support level for the past few months. Recently it took a reversal from the $10.000 support zone, attempting to make a recovery by making a bullish engulfing candle after taking a resistance level of around 50 EMA. Observing recent price action ATOM has been taking consistent retest from the 50 EMA.
The major technical indicators are presently providing bearish signals on the daily time frame. The price after taking rejection from the 50 EMA is seeing a decline of 5% within the last 24 hours. The candlestick pattern and price action suggest that it may breach its last support level in the near future.
Steady Increase in TVL in the coin
The Total Value Locked of ATOM has reached its all-time high near last April level, the sudden increase in its value indicates the increasing trust of buyers in the token. The present TVL of ATOM is $681,644K observing a change of -3.16% within the last 24 hours. There is a slight decline in its value within the last few days.
The Decline in Bullish Sentiments
An increase in negative sentiments of investors is observed across various social media platforms. The total bearish sentiment metrics have surged by 16.82% within the last week. The sentiment metrics indicate that the buyers are presently positive regarding the long-term value of the token.
Cosmos(ATOM) project is a platform that is focused on solving the problems that are experienced by the Blockchain industry. This project is dedicated to providing a solution for some inefficient proof-of-work protocols that are provided by other major cryptocurrency platforms. It projects an ecosystem of connected blockchains.
Technical Analysis of ATOM
The value of the RSI line currently is near the supply level at 45.61 points and 14 SMA is trading at 45.80 points providing support to it. The RSI line has been taking constant resistance from the median line despite crossing above 14 SMA for the past few weeks.
The Stochastic RSI is taking a negative reversal from the demand zone. The %K has recently crossed below the median line whereas the %D line is steadily approaching it. The current value of the Stochestic RSI is 66.01 points and it may soon reach the demand zone.
Conclusion
The ATOM price is currently taking a bearish reversal from its resistance near the price of $11.300 while its nearest support is 8% below the current price near $10.000 and its next support is around the previous high of $10.500.
Technical levels –
Support – $10.000 and $10.500.
Resistance – $11.300
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.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/31/atom-price-analysis-will-atom-price-survive-above-last-defence/