Cosmos (Atom) price opens higher on Tuesday but is not able to sustain the higher momentum. At the press time, Cosmos (Atom) drops to 1% with a 30% rise in volumes in the past 24-hours at $3,511,838,101.
- Cosmos fails to capitalize on the previous session’s gains on Tuesday.
- A decisive break below $32.85 support would bring further downside in the coin.
- Negative divergence on RSI indicates no respite for the bulls.
Cosmos showed resilience near the recent lows of $27.34 made on Saturday. The strong fundamentals support the rise in the Cosmos coin. As per the recent blog post by Cosmos, a Cosmos and Astar (Polkadot) bridge is estimated to be delivered in Q1, 2022. The testnet bridge is EVM-based which means only blockchains supporting both EVM and Cosmos SDK are compatible with this testnet bridge.
On the daily charts, the formation of ‘three top” near $44.80 is a bearish pattern. The mentioned level has been tested thrice and has been resulted in the price correction. After testing the lows near $20.12, ATOM jumped 54% from the lows of $20.10 to the highs of $44.68 on January 7. After that, the price consolidates between $35 and $45 for two weeks.
After testing the highs again on January 17, the price dropped 38% towards the low of $27.34. The bearish RSI divergence indicates the sell-off in the digital coin. The mentioned level is a strong support level since September.
A decisive break below the 50/100/200 DMA would see the continuation of the downside momentum toward the immediate target of $24.00.
Next, the market participants could test the $20.00 level.
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Source: https://coingape.com/markets/cosmos-atom-struggles-below-37-00-correction-upto-28-towards-25-0/