After a prolonged downtrend, Cosmos (ATOM) is attempting to form a bottom. The buyers pushed the price above the 20-day EMA ($7.84) on July 1 but the 50-day SMA ($8.81) is likely to act as a strong barrier.
The flattish 20-day EMA and the RSI near the midpoint indicate that the selling pressure may be reducing. If buyers thrust the price above the 50-day SMA, the bullish momentum may pick up and the ATOM/USDT pair could rally to $10.84 and then to $12.50. A break and close above this level could suggest a potential trend change.
This bullish could invalidate in the short term if the price turns down from the current level and breaks below $6.89. If that happens, the pair could again retest the critical support at $5.55.
The 4-hour chart shows that bulls are attempting to flip the 50-SMA into support. If the price rises from the current level and breaks above $8.38, the bulls could challenge the immediate resistance at $8.75. A break above this level could signal the resumption of the up-move. The pair could then rise to $9.
Conversely, if the price turns down and plummets below the moving averages, it will suggest that bears continue to sell at higher levels. The pair could then slide toward $7.18 and then $6.89.
The flattish 20-day EMA and the RSI near the midpoint indicate that the selling pressure may be reducing. If buyers thrust the price above the 50-day SMA, the bullish momentum may pick up and the ATOM/USDT pair could rally to $10.84 and then to $12.50. A break and close above this level could suggest a potential trend change.
This bullish could invalidate in the short term if the price turns down from the current level and breaks below $6.89. If that happens, the pair could again retest the critical support at $5.55.
The 4-hour chart shows that bulls are attempting to flip the 50-SMA into support. If the price rises from the current level and breaks above $8.38, the bulls could challenge the immediate resistance at $8.75. A break above this level could signal the resumption of the up-move. The pair could then rise to $9.
Conversely, if the price turns down and plummets below the moving averages, it will suggest that bears continue to sell at higher levels. The pair could then slide toward $7.18 and then $6.89.