Cosmos (Atom) Struggles Below $37.00, Correction Upto 28% towards $25.0
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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.
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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