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Crypto Hot News Cosmos: Is taking a short position on ATOM the way to go

Hot Crypto News Today Cosmos: Is taking a short position on ATOM the way to go You Must Read To Get More Information For Trading and Investment.

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

After hitting its ATH on 7 January, Cosmos (ATOM) bears have stepped in to exert consistent pressure. The gradual decline below its multi-month long trendline resistance (previous support) gave sellers the well-needed strength for a trend-altering reversal.

ATOM is now in a tricky spot. The 23.6% Fibonacci resistance could reshape the trajectory of the near-term trend. At press time, ATOM was trading at $11.67, up by 3.08%in the last 24 hours.

ATOM Daily Chart

Crypto Hot News Cosmos: Is taking a short position on ATOM the way to go

The recent bearish phase (from its April highs) led the alt to lose more than 71.4% of its value and plunge towards its 10-month low on 12 May. The drop below the eight-month-long trendline support flipped the trajectory in the sellers’ favor. Thus, they found renewed selling pressure to fuel the bearish fire.

The downfall pushed the alt below its 20-50-200 EMA on the daily timeframe. The 20 EMA alongside the Fibonacci resistances has restrained all bullish revival endeavours over the last month. Keeping in mind the recent rejection of higher prices at the 23.6% level and the widening gap between the EMA ribbons, the bears claimed to have a superior edge.

A series of candles above the Point of Control (POC, red) could lead the altcoin into a short-term tight phase. Any close below this mark would re-open a path towards the $9.6-level support before a bullish comeback possibility. Looking at the overextended gap between the 20 EMA and 50 EMA, the bulls would aim to push for more after a likely sluggish phase in the days to come.

Rationale

Crypto Hot News Cosmos: Is taking a short position on ATOM the way to go

The RSI poked its record low on 12 May and revived from this level as it endeavored to test the 35-resistance. Any reversals from its trendline or horizontal resistance would delay the revival possibility on ATOM’s charts.

The CMF took a similar position. While being fairly below the zero-mark post a bearish divergence with the price, it favoured the sellers.

Conclusion

The current devaluation has significantly hampered the buying ability to propel an uptick in high volumes. The current bearish pennant setup alongside the 23.6% Fibonacci resistance could play spoilsport for the near-term gains. But, with an overextended gap of 20 and 50 EMA, the buyers might aim for an eventual comeback in the coming days.

Finally, market sentiment analysis to complement these technical factors is vital for making a profitable move.

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Written by thegamefi

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