- ATOM was down by more than 4% in the last seven days.
- On-chain metrics and market indicators looked optimistic for ATOM.
Cosmos [ATOM] bore losses over the last few days as its value plummeted by 4.3% in the last several days. In the last 24 hours alone, it was down by 2%.
According to CoinMarketCap, at the time of writing, ATOM was trading at $9.63 with a market capitalization of over $3.6 billion.
ATOM is near a key support level
In a tweet dated the 21st of January, Michaël van de Poppe noted that ATOM’s price was near a critical support level. Also, the $7.50–9.00 zone was a crucial area to hold.
Cosmos has been lagging behind like Polkadot.
Crucial area to hold, if this area between $7.50-9.00 is going to hold, likely a breakout to $22-26 seems next. pic.twitter.com/WK9EgBcHid
— Michaël van de Poppe (@CryptoMichNL) January 21, 2024
If ATOM manages to hold on to the aforementioned level, then the token’s price may reach $22–26 over the coming weeks.
What should investors expect?
To understand whether ATOM would be able to hold its ground, AMBCrypto delved deeper into its on-chain metrics.
Our analysis of Santiment’s data revealed that ATOM’s Social Volume remained high throughout the last week, reflecting its popularity in the crypto space.
However, it was surprising to see that despite the massive price downtick, its Weighted Sentiment was high. This meant that investors were confident in ATOM and expected its price to rise at the time of writing.
Source: Santiment
AMBCrypto’s look at ATOM’s daily chart also revealed that ATOM could be retesting its support level soon.
The movement of the Bollinger bands suggested that ATOM’s price was in a less volatile zone, indicating that the chances of an unprecedented price decline were unlikely.
ATOM’s Relative Strength Index (RSI) also took a sideways path under the neutral zone, hinting at a few slow-moving days. Also, the Chaikin Money Flow (CMF) looked bullish as it registered an uptick.
Source: TradingView
How much are 1,10,100 ATOMs worth today?
If ATOM manages to begin a bull rally in the coming weeks, it might face a few hurdles northward. AMBCrypto checked Cosmos’ liquidation heat map to find out the possible resistance zone.
Our analysis revealed that, in the short term, ATOM might face resistance near $9.96. If it manages to break out above that level, it may face strong resistance near the $10.5 zone next.
Source: Hyblock Capital
