Atom Just Broke The Trendline That It Rode Since Last July

May 7, 2022

Atom broke support that held since September
Broke a trend that it has ridden since July

ATOM, the internal currency of the Cosmos network, just broke the trendline that it has ridden since July 20, last year. The digital asset which is currently trading at $17.030 has reserved its gains, indicating that the coin may be on a downtrend. The coin which has trended in an ascending channel for 8 months may have entered a bearish trend with this reversal.

The ascending channel built a base until April 10, 2022 when the coin traded at $26.51 before a downward pressure set in which culminated in today’s reversal. This has resulted in the break of the $20.70 support which has held since September 8, 2021.

With the degradation of this critical support, ATOM market price may be heading down to $9.010 which is the next strong support.

ATOM Price Analysis

The 20-day and 50-day moving averages indicator shows that ATOM is on a downtrend. This trend is accentuated when we look at the Relative Strength Indicator (RSI) which currently has a value of 38. This shows that the cryptocurrency is not yet oversold so the trend will continue for some time.

Getting it in proper perspective, this means that the bottom is not yet in for the ATOM/USD chart and the coin will likely test the $9.010 support in the coming hours or days. On a mid-term assessment, there is no remarkable increase in the ATOM/USD trading volume that shows that the market will support higher prices in the near term.