Cosmos Price Analysis - ATOM Is Still in the Middle of Consolidation, But We Could See a Price Increase Soon

⠀Cosmos price: $2.51 ⠀Key ATOM resistance levels: $2.66, $2.96, $3.4 ⠀Key ATOM support levels: $2.39, $2.15, $1.9

*Price at the time of writing

ATOM price long-term trend: Bearish

For the past four months now, the Cosmos market has continued to remain in a downward range after witnessing bearish action in the mid-year period. In September, the token saw a bounce off to $3.7 after testing the wedge’s support at around $1.9.

Buy/Sell Cosmos (ATOM)

Cosmos has now turned away from the weekly high at $2.67, rolling over near the $2.39 and $2.15 support levels. A drive beneath the previously mentioned support could send the price to the September rebound level at $1.9.

As we can see, the RSI has sharply nosedived at the mid-band to reflect the recent price drop. Inversely, the Stochastic RSI is suggesting a bullish momentum, although the price is still dropping. If the positive move eventually occurs, the $2.66, $2.96 and $3.4 resistances may play out.

Considering the current market conditions, Cosmos is looking bearish on the daily chart. We can expect more price cuts if the market closes beneath the $2, which is currently an important area for the bears to overcome.

ATOM price medium-term trend: Bearish

While the ATOM market is revealed on the downside, the technical RSI indicator has crossed back to the bullish zone but is now testing the 50 level after a slight drop. The market may rise above the descending trend line (white) if the RSI 50 can provide support for the market. The key resistance levels for a potential break upwards are $2.8, $3.2 and $3.6.

Looking at the current price formation, Cosmos is following a bearish scenario on the 4-hour time frame. The token is likely to meet near support at the $2.2 - $2 price zone. Breaking this zones could result in a significant drop in the price of ATOM.

Meanwhile, the Stochastic RSI reveals that the bears are currently in play. The bearish action may become severe if the price continues to oscillate to the oversold area.

ATOM price short-term trend: Bullish

The price of ATOM is still looking bullish on the hourly chart, although the price variations in the last 24 hours suggest that the bulls are turning weak after witnessing a correction to $2.4, where the rising trend line (white) lies. As we can see on the technical indicators, the trend has diverged bearishly.

As of now, Cosmos is in the middle of consolidation. If the $2.4 support can hold steady, the price could bounce off to the $2.6 and $2.7 resistances before climbing further. Conversely, a bullish cross on the Stochastic RSI may provide buying opportunities in the ATOM market.

On the other hand, we may see a downward move to the $2.3, $2.2 and $2.1 price levels if the bears continue to step into the market. Nevertheless, the market is currently bearish on the RSI indicator.