Cosmos Price Forecast: Things could get worse for ATOM before they get better
- Cosmos price eyes further losses amid traders heeding the bearish call to sell on April 30.
- ATOM could drop another 5% to $10.52, the critical support level.
- The bearish thesis will be invalidated upon a decisive 12-hour candlestick close above $13.11
Cosmos (ATOM) price remains bearish for the third day since April 28, flashing red as investors continue to lose money. The downtrend comes as traders continue to heed the call to ‘sell ATOM’ signaled on April 29. This, coupled with accumulating overhead pressure, could see the altcoin lose more ground.
Cosmos price could shed 5% amid massive sell-off
Cosmos price is down almost 10% in the last 24 hours, to exchange hands at $10.98 at the time of writing. Based on CoinMarketCap, Binance exchange's data tracker, ATOM shows a 50% increase in 24-hour trading volume, suggesting a growing interest among token holders. This is because the altcoin's trading volume continues to rise despite plummeting market value. If this sentiment continues, the altcoin’s price could drop further.
An increase in selling pressure could see Cosmos price drop 5% to the critical support level of $10.52. ATOM could extend a leg down to tag the $9.32 support floor in the dire case, denoting a 15% downswing from the current price.
Based on the ATOM price action, the altcoin has to complete the ongoing series of downtrends before a possible upside.
Notice that on April 29, the Relative Strength Index (RSI) signaled a call to ‘sell ATOM’ when it crossed below the signal line (yellow band). Traders heeding this call is what solidified the downtrend and from the look of things- the RSI is below the mean line and headed south, - the downtrend could continue.
ATOM/USD 12-hour chart
On the upside, Cosmos price could bounce from the critical support at $10.52 to assume a northbound move. This could see ATOM tag the immediate hurdle at $11.54.
Sidelined investors buying ATOM around the 50-, 100-, or 200-day Exponential Moving Averages (EMA) at $11.62, $11.80, and $12.17, respectively could solidify the northbound move for Cosmos price, fueling a continued uptrend. In such a case, the altcoin could tag the $13.11 resistance level, denoting a 20% upswing from the current price.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
