ATOM Technical Analysis: Uncertainty Rises Above 200-Day EMA

The ATOM technical analysis shows the buyers reclaiming dominance over the 200-day EMA and the $15 mark. But will the uptrend sustain this month?  The ATOM price action bullish reversal rally from a long-coming support trendline in the daily chart resulting in a price jump above the 200-day EMA. Furthermore, the rise in intraday trading volume supports the bull cycle, projecting a potential trend continuation to $20. However, the increased selling pressure above the EMA warns of a downfall. 

Key Points:

• The Cosmos prices show higher price rejection above the 200-day EMA. 
• The market value sustains above the $15 mark for now.
• The intraday trading volume in Cosmos is $616 Million.

Source-Tradingview

ATOM Technical Analysis

The ATOM price displays a bullish reversal from the crucial daily support trendline resulting in a 48% jump over the past three weeks. The bullish rally beats the 50-day EMA and influences a crossover between the 50 and 100-day EMAs to regain positive alignment.  However, the price faced increased selling pressure above the $15 mark resulting in a retracement to $14.5 twice this fortnight. Currently, the prices display a bullish attempt to sustain above the 200-day EMA and the $15 mark.   With sustained selling, the ATOM price will tumble 13.2% and retest the neckline support of the double bottom pattern. A bearish breakdown from this support will accelerate the bearish momentum and offer a breakdown attempt from the long-coming support. However, until the ATOM price sustains above the rising trendline, the market participants can maintain a bullish outlook.

Technical Indicator

A bearish divergence in daily RSI slope bolsters the formation of a double bottom pattern, and its crossover below the mean line will encourage prolonged correction. Moreover, the bearish crossover between the MACD and signal lines signals a selling opportunity.  Therefore, the technical indicators display a rising bearish sentiment. As a result, the ATOM technical analysis provides a selling opportunity.  Resistance levels- $0.42 and $0.50 Support levels-  $0.36 and $0.30

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