Cosmos Technical Analysis: ATOM rallied to $9.0 despite broad-based altcoin declines
|- Cosmos hits a wall within a whisker of $9.00, giving way to ongoing losses eying $7.0.
- ATOM/USD bulls hunt for support above $7.0 in a bid to contain the accrued gains in August.
While other altcoins followed in Bitcoin (BTC)’s slump this week, Cosmos was among the altcoins that recorded massive gains. The digital asset pushed for higher levels, stepping above $8.0. A weekly high traded at $8.82 put a temporary pose to the bullish action.
Meanwhile, ATOM has adjusted lower to trade at $7.71 after tentative support at $8.0 failed to hold. The reversal is still underway and appears to be gaining momentum. This increasing bearish grip is illustrated by the RSI as it dives towards the midline from highs above 70.
The MACD also cements the growing influence of the sellers over the price. A retreat eyeing the midline is underway. In addition, the bearish divergence from the MACD signals that selling pressure is bound to rise in the coming sessions.
Glancing lower, support is envisioned at $7.0, the 50 SMA in the 4-hour range and $6.0. In the event of extended losses, ATOM would seek refuge at the 200 SMA ($5.15) and $3.40.
ATOM/USD 4-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.