ATOM Price At Multi-Year Low: What’s to Come Next for Cosmos?
Cosmos (ATOM) has been facing significant selling pressure, causing its price to plummet to a multi-year low. Over the past six months, ATOM has lost 70% of its value, forming a pattern of lower lows and lower highs.
Currently, the ATOM price is in the lower low territory and showing signs of bullish momentum. However, a bearish pullback due to profit booking in the short term can be expected.
Since April, ATOM has struggled to break above key moving averages, indicating the dominance of sellers. In August, buyers attempted to push the price above the 20-day EMA, but sellers were able to push it down.
As of now, Cosmos is trading at $3.92, experiencing a 3.18% increase in the past 24 hours. The market capitalization stands at $1.53 billion, with a 24-hour trading volume of $107.19 million.
There are some positive indicators for ATOM. Nilesh Rohilla, a crypto analyst, has noted a bullish divergence on the RSI, which could attract buyers and create a bullish momentum for the token.
Another crypto analyst, Butch, mentioned that despite the current price decline, Cosmos is an outstanding chain with a robust user base and developer community. He believes this could present a great buying opportunity for long-term investors, with the potential for the price to reach $100 in 1-2 years, marking a 26x gain.
In technical analysis, it is observed that ATOM has been forming lower lows and lower highs. The RSI has generated a bullish signal in the lower-low territory, indicating a potential for short-term buying momentum. If buyers show confidence and trading volume supports it, ATOM could see a gain of around 40% and create a new lower high.
A key factor for a potential trend reversal would be if the price manages to overcome the 200-day EMA level. However, if the buyers fail to sustain momentum, sellers may continue to dominate, potentially pushing the price to a new all-time low if it falls below the $3.50 mark.
Although the ATOM price has remained bearish in recent months, the bullish divergence on the RSI suggests a possible rebound. The price may encounter resistance near the $6.30 and $9.00 levels, while support is expected at $3.50 and $2.40.
In summary, while the ATOM price is currently at a multi-year low, there are indicators of potential bullish momentum. However, caution should be exercised, and investors should consider the long-term viability of Cosmos before making any investment decisions.