Cosmos Price Analysis: the moon has to wait, ATOM reverses to the earth

Cosmos (ATOM) moved to the 15th position in the global cryptocurrency rating. Now the coin has the market capitalization of $1.78 and aims to overtake Stellar (XLM) that sits on the 14th place with the market value of $2 billion.  ATOM has gained over 12% in the recent 24 hours and hit the intraday high at $8.84. At the time of writing, ATOM/USD is changing hands at $8.68. Cosmos has been growing rapidly since the end of the previous week amid strong trading volumes. The coin has increased by over 50% from August 22 low of $5.40.

ATOM/USD: The technical picture

ATOM retreated from the recent high to test the local support created by the upper line of the 1-hour Bollinger Band located marginally below the current price. As the FXStreet has already reported, the coin retains bullish potential as long as it stays above $8.00. This support is reinforced by 1-hour SMA50 and it is critical for the coin in the short run. If this barrier gives way, the sell-off may be extended towards $7.00 (1-hour SMA100) and $6.50 (1-hour SMA200). 

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. However, considering that the RSI on the intraday charts has reversed to the downside, the further bearish correction towards the above-mentioned levels looks highly likely at this stage.

ATOM/USD 1-hour chart