Cosmos Trades Below $5.5 with Lack of Short-Term Support

Cosmos, one of the most lucrative platforms amongst the top 25 projects in the global crypto market that solves issues about scalability, usability, interoperability, and the most customizable blockchains. However, due to loss of momentum, the coin has hit supports as low as $4.5 in 2 weeks from the YTD high marked around $8.8.

With intraday recovery, ATOM has reclaimed its trading position above $5 and is currently trading at $5.2 with the nearest resistance at $5.5 & $6. In the previous week, with a bearish steep candlestick, Cosmos nosedived below 38.20% Fib retracement level on the 24-hour chart against the US Dollar.

Cosmos Price Analysis

ATOM, after having tested supports as low as $1 during the massive sell-off in March and within five months of the YTD low marked, the currency spurred as high as $8.8 in the previous month. With an inability to keep up with the pace, Cosmos is now drawing a negative sentiment around the lower band and above 50.0% fib level.

While having breached the major resistance above $8.5 in the last week of the previous month, Cosmos breached the upper Bollinger band at 0.0% fib level with a swing high. Moreover, with the steep dip, ATOM has lost over 25% as it trades below $5.5 presently. Moreover, the Bollinger Bands are seen widening, and therefore, we project near-term volatility. But, with a gain in daily momentum, the price trend has shifted away from the lower extremity.

ATOM holds strong support from SMA200 at $3.45 but has lost support from SMA50 with a gradual correction over the past ten days. The MACD indicator exhibits bearish divergence, and the RSI is also inclined towards the major support area at 44.51, however, away from hitting the oversold extremity.