Ali Charts, a well-known cryptocurrency trader and analyst, tweeted earlier that Cosmos (ATOM) was ready to break out of a falling wedge sample on its hourly chart. Given that the dealer predicted that ATOM’s value may increase by more than 7% as a result of this, it might be a highly positive indication for the alternative coin.
However, compared to the 1-hour chart discussed in Ali Charts’ post, the daily chart for ATOM was significantly less positive. The 9-day EMA line was attempting to dip below the 20-day EMA line at the time of publication. Should this cross-take place, it would indicate a short-term shift in ATOM’s evolution from bullish to negative.
If this potential bearish technical flag is confirmed, ATOM’s value may be vulnerable to falling in the ensuing 24-48 hours to the next major support level at $8.904. In the coming week, continued market pressure could drive the cryptocurrency’s price as low as $8.10 below this level.
However, the bearish argument may be refuted if ATOM closes today’s daily candle above the 9-day and 20-day EMA traces. The breakout predicted by Ali Charts may occur in this circumstance. This might push the altcoin’s price above the $9.524 resistance and possibly even challenge the $10.01 resistance in the coming days.
CoinMarketCap reported that ATOM saw a marginal value decline from the previous day’s buying and selling of 0.31%. Consequently, at the time of publication, the altcoin was worth about $9.34. This value decline was enough to cause ATOM to lose ground to the two leaders of the cryptocurrency market, Ethereum (ETH) and Bitcoin (BTC), by around 0.37% and 0.63%, respectively.
The 24-hour trading volume for ATOM decreased by more than 20% over the previous day, leaving it at roughly $72,226,641. Despite a little decline in price over the preceding 24 hours, ATOM’s weekly performance was still up by just over 1%.