Cosmos (ATOM) is an organization that works on unraveling the problems that are experienced by the Blockchain industry. This project provides a solution for some ineffective proof-of-work protocols that are provided by other major cryptocurrency platforms. It is basically an ecosystem of connected blockchains.
ATOM’s price plummeted below its critical support level of $10,000, exhibiting a highly bearish momentum. Despite the buyers’ multiple endeavors to initiate a positive recovery from their demand zone, these efforts ultimately proved fruitless.
Based on the previous analysis, it was projected that the candlestick pattern and price action indicated a potential breach of its previous support level. The major technical indicators were providing bearish signals whereas the price was facing constant rejection from the 50 EMA on the daily time frame.
Currently, the ATOM token is witnessing a substantial decline of 21% as it has recently broken below the demand zone and undergone a subsequent retest. The buyers are attempting to salvage the price, but this task may prove to be quite challenging.
Steady Increase in TVL Of Cosmos
After reaching its all-time high last April, The Total Value Locked (TVL) of Cosmos is undergoing a decline. The fall in its value indicates that buyers may be a little pessimistic regarding the token.
The Decline in Bullish Sentiments
An increase in negative sentiments of investors is observed across various social media platforms, according to the metrics presented by the LunarCrush platform. The total bullish sentiment metrics declined by 57.38% last week. The sentiment metrics indicate that buyers are currently a little hesitant regarding the token.
Technical Analysis of ATOM Price
The RSI line is steadily ascending towards the demand zone, displaying a persistent upward trend. Presently, the RSI value is approximately 51.66 points, encountering notable resistance from the 14 SMA at 42.38 points.
The stochastic RSI is taking a negative reversal from the median line which is acting as its recent resistance. The %K has recently crossed below the median line whereas the %D line is steadily approaching it. The current value of the stochastic RSI is 45.09 points and it may soon reach the demand zone.
Conclusion
After experiencing a bearish drop, the value of ATOM price might continue to decline. An increase in negative sentiments of investors is observed across various social media platforms.
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.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/21/cosmos-price-analysis-will-buyers-fail-to-defend-atom-price/