Cosmos Drops 0.75% to $8.89 - Key Analysis for ATOM Traders

The price of the Cosmos token (ATOM) has declined 0.75% over the past hour to trade at $8.89. With a market cap of $3.10 billion, ATOM remains one of the top 20 cryptocurrencies by valuation.

Looking at the data, ATOM has dropped 3.99% over the past 24 hours and 3.94% in the last week. The monthly decline stands at 8.92%, while the 6-month drop is a substantial 34.49% indicating a prolonged downtrend.

The hourly 0.75% decline shows sellers remain in control of the short-term trend. However, ATOM is approaching the 2022 low around $8.50 which could act as support.

What Key Levels Should ATOM Traders Watch?

On the downside, the 2022 low around $8.50 is key support. Below that, the 2021 lows near $7.50 come into focus.

To turn bullish, ATOM needs to see a daily close above the 50-day moving average around $10. That would turn the short-term outlook positive. Further resistance is seen around $13 - the June highs.

Is Cosmos a Buy at Current Prices?

ATOM remains deep in a long-term downtrend across timeframes. While oversold conditions make a bounce likely, significant overhead resistance remains.

Conservative traders may want to wait for a break above the 50-day MA at $10 before going long. Aggressive traders could look to buy dips near $8.50-$9.00 support.

Overall, the trend remains bearish for ATOM in the bigger picture. A close above $10 is needed to signal bullish momentum is returning. Until then, rallies are likely to be sold into by traders.

In summary, Cosmos' ATOM token remains under pressure, but could see a relief rally if $8.50 support holds. The overall trend remains bearish, but deeply oversold conditions suggest a short-term bounce is possible before lower levels are tested. A close above $10 would be the first sign of bullish momentum potentially developing.

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