Cosmos price: $6.1 Key ATOM resistance levels: $7, $8 Key ATOM support levels: $5, $4.5

*Price at the time of writing

ATOM price long term trend: Bullish

ATOM followed a bullish reversal pattern after establishing an all-time low at $3. The cryptocurrency has been trading in an ascending channel, which touched $7.2 on Monday. The ATOM price has since dropped and the coin is currently trading around the $6 level. The market has gained approximately 32% in the past seven days of trading.

Buy/Sell Cosmos (ATOM)

Cosmos is the 16th largest cryptocurrency by market cap, and the ATOM token holds a market cap valuation of $1.17 bllion.

On a slow decline, the selling pressure is approaching the $5 and $4.5 supports toward the lower channel.

If the market continues to fall, we may see the daily Stochastic RSI heading towards the oversold region, now facing the ascending green trend line. On the other hand, the market may resume an upward move to $8 after breaking the $7 resistance. Viewing the daily RSI, we can see that the market is respecting the 60 level of the RSI. A drop below the level could place the market in a more negative trend.

ATOM price medium term trend: Bearish

A look at the 4-hour RSI level indicates that the market is about to break below the 50 level which has been a defensive line for the bulls since the market rose in May. The sellers may fully take charge of the market if the $6 level breaks, locating further support around $5.3 and $4.5.

In fact, the 4-hour Stochastic RSI is convincingly revealed at the oversold level, and is preparing for a bullish cross. If the 20 level eventually receives cross-over, the key resistance to expect lies at $7. The $8 and $9 lie above the channel. At the same time, a break below the channel could lead the bears to $4 and $3.

Nevertheless, Cosmos has remained to trade in a channel since it was launched into the market as the buyers' keen interest leveled up the token on a monthly high of $7.

ATOM price short term trend: Bearish

The bearish dominance is more apparent from a short term perspective as the token is currently testing the lower wedge. After the sudden price drop to $3 on May 30 which formed a bullish pin bar, the ATOM market quickly recovered to $5.5 before the market began to carve out an ascending broadening wedge pattern, and the price action remains intact within its boundaries.

Respecting the wedge, Cosmos is likely to bounce back to $7 before meeting further resistance at $7.5, sitting atop the wedge. If the market plays along with the hourly Stochastic RSI sell signal, we may witness a bearish breakout to $5 and perhaps to the $4.5 support as well.

Following yesterday’s bearish scenario, the ATOM is oversold on the hourly RSI.