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- 1 The histogram gap is wide in the MACD oscillator, which indicates that the price is going down.
- 2 The ATOM price had been dropping from a weak high and sliding down on the charts.
Cosmos is a platform that enables and encourages distinct blockchains to communicate and exchange with one another.
Blockchains have various features and standards, but Cosmos makes them compatible and interoperable. Users can even possibly get to access multiple applications and services this way. The ATOM cryptocurrency powers the Cosmos Network.
ATOM is the working fuel or the native token of the Cosmos Network. People avail it to pay transactions and network fees, and to stake to secure the network and gain rewards.
Whereas, Staking is a proven technique of holding some ATOM tokens to help validate transactions and to keep the network secure.
ATOM tokens are given to validators and delegators, the people who stake their tokens. ATOM tokens are also then utilized to choose from the pieces of advice that suggest improvements for the network.
Cosmos has a procedure to determine, who validates the said transactions and gets rewards on it.
Moreover, Validator nodes that stake more ATOM tokens have a higher probability of being selected to validate transactions and get rewards. Nodes that are caught cheating are punished and can lose the tokens that they staked.
Cosmos Price is About to Slip Past the Wedge
Cosmos price is below the 20-day, 50-day, and 100-day EMAs (exponential moving averages) that are resisting the crypto price trend. The buyers are barely holding on to the 200-day EMA. If this breaks, a big drop is likely depending on the selling pressure, and the price could fall more and even hit the demand zone in the flow.
The MACD line at 0.220 and the signal line at 0.020 are both under the zero line and they have widely crossed each other. The histogram gap is wide in the MACD oscillator, which indicates that the price is going down.
The RSI value is 40.52 points and the 14-day SMA is 48.69 points, which is under the middle line. It means that the price is nearing the oversold zone soon, further suggesting that the ATOM asset is losing strength and could reach new lows.
The ATOM price had been dropping from a weak high, sliding down on the charts, and facing constant resistance. At the time of publishing, the ATOM price is at 9.552 trading with an intraday increase of 1.47%.
However, the Cosmos crypto price could continue its downtrend and hit the nearest support level at $9. If it fails to maintain the current level, it can hit the demand zone as well.
On the other hand, if ATOM breaks above the nearest resistance, it might rise to recover levels. On the upside, Cosmo’s price could encounter the nearest resistance levels at $12 and more.
Summary
Cosmos price is below the 20, 50, and 100-day EMAs (exponential moving averages) that are resisting the crypto price trend. The buyers are barely holding on to the 200-day EMA. If this breaks, a big drop is likely depending on the selling pressure, and the price could fall more and even hit the demand zone in the flow.
However, Cosmo’s price could continue its downtrend and hit the nearest support level at $9. If it fails to maintain the current level, it can hit the demand zone as well.
Technical Levels
Support Levels: $9
Resistance Levels: $12
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
