Cosmos Technical Analysis: ATOM/USD plummets from 2020 highs at $8.59, can short term support at $8.00 hold?

Cosmos is dealing with a retreat from a newly traded high at $8.59. The weekend session was particularly yielding for ATOM despite being lethargic and drab for the majority of cryptocurrencies. Cosmos has soared to new yearly highs after new yearly highs since it traded a yearly low at $1.00 in March (during the Black Thursday crash triggered by the Coronavirus pandemic).

At the time of writing, ATOM is trading at $8.07 as bearish pressure builds following the rejection from $8.59. Intriguingly, indicators such as the RSI and the Elliot Wave Oscillator are still on the bullish side. For instance, the RSI is still holding at 70 (the overbought) while the EWO is printing a bullish session. This means that if support at $8.00 remains intact, buyers will have an easier task pulling the price back to $8.50.

On the downside, other support areas are highlighted at $7.00, the accelerated trendline (green broken line) and $6.00. The 50-day SMA is also in line to provide support above the 200-day support and the major trendline (black continuous line).

In spite of the retreat, ATOM remains in the hands of the bulls and the bullish case above $8.50 has potential. It would be, however, vital to watch the volume indicator and wait for a confirmed reversal above the short term support at $8.00.

ATOM/USD daily chart