Cosmos Price Analysis: ATOM/USD stays above $8.00, gets ready for another bullish wave
- Cosmos retreated from the recent high amid natural correction.
- The sell-off may be limited by the support created by psychological $8.00.
Cosmos (ATOM) is the sixth-largest digital asset with the current market capitalization of $1.64 billion. The coin has gained over 10% in the recent 24 hours to trade above $8.00 at the time of writing. Cosmos has been growing rapidly since the end of the previous week amid strong trading volumes. The coin has increased by over 50% August 22 low of $5.40 and hit the recent high at $8.57 on Sunday, August 23.
ATOM/USD: The technical picture
ATOM retreated from the recent high to test the local support created by the middle line of the 1-hour Bollinger Band located marginally below $8.00. As the FXStreet has already reported, this support is critical for the coin in the short run. Once this barrier gives way, the sell-off may be extended towards $7.00 (1-hour SMA50) and $6.50 (1-hour SMA100). The further decline looks unlikely at this stage as the RSI on the intraday charts stays on the neutral territory and still points upwards.
On the upside, a sustainable move above the recent high is needed for the upside to gain traction. Once it happens, psychological $9.00 will come into focus.
ATOM/USD 1-hour chart
Author
Tanya Abrosimova
Independent Analyst
