Cosmos (ATOM) Price Analysis: RSI Divergence May Attract Buyers After a Bearish Trend

Cosmos (ATOM) price has witnessed strong selling pressure. Its price has dropped to a multi-year low by losing 70% in the past 6 months.

The price of Cosmos (ATOM) has experienced significant selling pressure, leading to a 70% decline over the last six months and a drop to a multi-year low. This decline has been characterized by lower lows and lower highs.

At the time of writing, the ATOM price had fallen into the lower low zone and was showing bullish momentum. This could lead to short-term profit booking, which might manifest as a bearish pullback.

Since April, the price has faced resistance below key moving averages, indicating seller dominance. In August, buyers attempted to cross the 20-day EMA, but sellers remained strong and pushed the price down.

Cosmos crypto was trading at $3.92, showing an increase of 3.18% over the last 24 hours. The market capitalization stood at $1.53 billion, while the 24-hour trading volume was $107.19 million.

According to Nilesh Rohilla (@nilesh_rohilla) on Twitter, the RSI is showing a bullish divergence. This divergence could attract buyers, leading to bullish momentum in the ATOM price.

$ATOM: I am seeing a bullish RSI divergence on ATOM price.

THAT'S IT.#COSMOS #Altseason pic.twitter.com/g2IX3pJ1Cx

The RSI is generating a golden crossover with the RSI-based moving average after a bearish trend and price in the lower-low zone.

According to Butch (@Oxthebutch) on Twitter, the Cosmos price has melted to the bottom. Given the chain's large user and developer base, there could be a good buying opportunity. However, this analysis is based on the monthly chart and is only suitable for long-term investments.

Check out $ATOM price action on monthly chart. Clearly, it's very close the bottom.

Since it's an awesome chain with many users and developers, I think there is a great opportunity to buy it low now.

But be warned: it's only good for a long-term investment which means you need to… pic.twitter.com/z7lXFIeDKl

This analysis suggests that the ATOM price could reach the $100 level in 1-2 years, potentially yielding a 26x return over the upcoming years.

A technical analysis of the ATOM price over a 1-D timeframe reveals that the price has been declining in a lower lows and lower highs pattern. The price was in the lower-low zone and forming green candlesticks. The RSI is showing a bullish signal, which could be a crucial factor.

If buyers gain strength in the lower-low zone, short-term buying momentum could emerge. This momentum could lead to a price increase of around 40% and the formation of a new lower high, assuming the trading volume supports this move.

From the buyers' perspective, the price had collected liquidity below a major support level and could show a bullish move. If the price manages to cross the 200-day EMA level, a trend reversal could be possible.

On the other hand, if buyers fail to take over the momentum, sellers are likely to remain strong and continue to dominate. A price drop below the $3.50 level could attract sellers for a new all-time low.

ATOM Price Analysis: A Deep Dive

The ATOM price has remained bearish for the last few months and dropped to a multi-year low. It was trading below key moving averages, highlighting the bearish trend. However, the RSI has generated a bullish divergence, which could lead to a buying spree and a price rebound.

This bullish trend in Cosmos price could face resistance at the $6.30 and $9.00 levels. Meanwhile, support may be found at $3.50 and $2.40 levels.

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