Bearish Cosmos (ATOM) Dominates as Bullish Momentum Stalls

Bearish Cosmos (ATOM) Dominates as Bullish Momentum Stalls


Cosmos (ATOM) price faces bearish momentum due to negative sentiment caused by a chaotic legal battle, with the asset witnessing a price decline of 11.2% from the beginning of May 2023, according to technical analysis.

Cosmos (ATOM) experienced a short positive  tendency momentum on May 10, 2023. The investment saw an increase of 10.89% taking its value to a high of $11.2.

Nonetheless, the bears regained control of the market on May 13 and sent the coin to its current price of $10.40, representing a decrease of 1.12%. From the beginning of May 2023 till date, ATOM has witnessed a price decline of 11.2%, according to its current price.

Bears In Control of Comos (ATOM) Price

The ATOM/USDT daily chart implies that the market sentiment for Cosmos (ATOM) is predominantly bearish. It likewise shows a downward price movement dominating and hindering any potential positive  tendency momentum.

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The price of ATOM was influenced negatively by the past few chaotic legal battle with its previous growth and strategy chief, Grace Yu. 

The latest information raised negative sentiments between investors and market participants toward Cosmos (ATOM). The Validators even urged Cosmos founder Kwon Jae to close the case against Grace Yu. And this action signifies a level of concern within the Cosmos community.

Negative sentiment towards an investment can influence investor behavior, decreasing demand for ATOM and potentially contributing to downward pressure on its price.

An example of this is the fact that ATOM has been trending down since April 17, suggesting a bearish sentiment. The trendline now serves as a reference for identifying potential resistance levels since the investment has tested it severally.

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Cosmos (ATOM) trades betwixt $10.160 and $11.301 support and resistance levels. ATOM breaking through the $10.160 primary level of support will confirm the bearish momentum. Afterward, the bears can potentially target the following level of support at $8.441.

Nonetheless, the bulls are trying hard to push the price to the primary resistance level of $11.301 but couldn’t owing to the high bearish momentum. 

ATOM Technical Analysis

ATOM is trading below its 200-Day and 50-Day Simple Moving Averages (SMA), suggesting a bearish market sentiment. 

This level signifies that ATOMs’ recent and longstanding price averages are declining, potentially indicating a negative tendency and a higher possibility of further downward price movement.

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The Moving Average Convergence/Divergence (MACD) confirms the bearish market sentiment as the investment trades the signal line. It implies that the short-term moving average moves lower than the longer-term moving average, pointing toward downward momentum.

In the meantime, the Relative Strength Index (RSI), with a reading of 43.29, suggests a neutral market sentiment. 

The indicator shows the price is neither overbought nor oversold. For now, the ATOM price outlook is bearish. On the other hand, cryptocurrency assets are volatile and could deviate from predicted price trends without warnings.

Featured image from Pixabay and chart from Tradingview.com

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