Thursday, January 20, 2022
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By Brian Bollinger
Published 50 mins ago Updated 48 mins ago

The Cosmos coin price action showed a steady correction phase in this chart. The coin price lost half its value and plugged into the $20 support. After experiencing strong support from this bottom level, the price attempts for a recovery phase, starting from the crucial resistance levels near the $25 mark.

Cosmos/ATOM/USD Daily Time Frame Chart

Cosmos Price Analysis: ATOM Coin Bulls Breach Confluence Of Major Technical LevelsSource- Tradingview

Past Performance or Trend

On October 26th, the Cosmos coin failed to breach the All-Time High resistance of $44.5 and entered into a correction phase. This moderate pullback plummeted the coin price to the 0.618 Fibonacci retracement level, indicating a nearly 50% discount in its value.

The RSI Chart Shows A Significant Recovery In Its Chart

For more than three weeks, the ATOM coin price has been wobbling between $26 and $20 level. This pair obtained sufficient demand pressure from the bottom support during this consolidation period, preparing for a bullish reversal.

Today, the coin shows a long bullish candle of $13% gain, breached a confluence of crucial resistance levels, indicating an excellent long opportunity for crypto trades.

These resistance levels are;

  • A horizontal level of $26.2
  • 0.5 FIB level
  • 200 EMA of both daily and 4-hour chart

Therefore, reclaiming this resistance level is essential for the coin buyers to initiate a new rally.

By the press time, the ATOM coin is trading at 26.7, with an intraday gain of 13%. The 24hr volume change is $511.9 Million, indicating a 72% hike. According to the coinmarketcap, the coin stands at 30th rank with its current market cap of $6 Billion(+15.7).

Technical Indicators-

  • -The daily Relative Strength Index (53) has recently crossed above the neutral line, supporting the ongoing rally.
  • -As mentioned above, the ATOM coin is trying to cross above the 200 EMA line as well, providing an excellent edge for the long traders.
  • -The MACD indicator shows both its lines are steadily moving higher in the bullish zone, with the histogram chart confirming the progress with consecutive longer green candles.
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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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