Cosmos (ATOM) Rallies With Over 10% Gain As Indicator Shows Not In Safe Zone

• ATOM’s price shows strength as price bounces off from a weekly low of $8.5 giving bulls some relief. 
• ATOM’s price continues to look bearish as more sentiment for the market lingers, with things looking uncertain for most traders and investors. 
• ATOM’s price rallies high on the daily timeframe as the price moves toward the 50 Exponential Moving Averages (EMA) price, looking less likely to break higher.

The price action displayed by Cosmos (ATOM) recently hasn’t been motivating after prices declined from a region of $27 to a weekly low of $8.5. With many looking for a major dump in Bitcoin (BTC) price, the price of Bitcoin (BTC) bounced from $15,500 as price rallied to a high of $16,500, leaving bears on the sidelines as the price of Comos (ATOM) gains some relief bounces to hold strong above key support. The price action displayed by Cosmos (ATOM) and many altcoins recently have been problematic as many altcoins battle for survival. The Domino effect of the FTX saga and other huge investors involved has left the market at a standstill as the market is yet to make a major move after previous weeks. (Data from Binance)

Most crypto traders and investors have had a rough few days, with many concerned about where the market is headed after so much turbulence in the crypto space. Many altcoins have struggled to show strength, losing key support in a bid to survive.

The current market uncertainty has caused traders and investors to be hesitant to purchase altcoins, as there is no guarantee that they will rise in value any time soon.

The price of ATOM on the weekly chart has struggled despite the market uncertainty that has affected major crypto projects that have continued to build in this bear market, and more FUD (fear of uncertainty and doubt) persists. ATOM saw its price traded in a region of $17 on the weekly chart, but the price was rejected as ATOM’s price declined to a region of $8.5, bouncing off this region to trade at $9.5 with a small relief from the market.  

Weekly resistance for the price of ATOM – $10.

Weekly support for the price of ATOM – $8.5.

The price of ATOM remains considerably weak in the daily timeframe as the price trades above $8.5 support after the price was rejected from a high of $17.

ATOM’s price trades at $9.8 below its 50 and 200 EMA, acting as resistance for the price of ATOM. The price of $11.5 and $13.8 corresponds to the prices at these levels, acting as resistance. 

If the price of ATOM breaks and holds above $11.5, we could see more rallies for the ATOM price to a region of $13; a break below a region of $8.5 would send the price back to a region of $5. 

Daily resistance for the ATOM price – $11.5.

Daily support for the ATOM price – $8.5-$6.