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

Cosmos moved to 15th place in the global rating, but the price has stalled on approach to $9.00.
The intraday RSI implies that the downside correction is on the way.

Tanya Abrosimova Independent Analyst

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.