Cosmos (ATOM) Hovers at Bottom: Could Bulls Resist Selloff Ahead?

• The Cosmos price remained stable around the downside support mark of $8.
• ATOM crypto currently looks oversold and might glimpse a bounce soon.

The Cosmos (ATOM) price sails in the downside region and failed to surpass the 20-day EMA hurdle for the past sessions. 

Amidst the significant ups and downs, the ATOM price remained below the 20-day EMA mark, which signifies the bears’ dominance.

The ATOM price has continued to erode gains for weeks and dropped over 36% in the past 45 trading sessions. Impacted by the lower trading volume, the price consolidates below the $10 mark and signifies a negative outlook.

At press time, the Cosmos (ATOM) price traded at $8.58 with an intraday rise of 2.20%, reflecting neutrality on the charts. It has a monthly return ratio of -7.20% and -14.30% yearly, revealing a short-term downtrend.

The pair of ATOM/BTC is at 0.000121 BTC, and the market cap is $2.82 Billion. Analysts are neutral and suggest that the ATOM price may continue to hover in range and remain below $10.

Cosmos (ATOM) Looks Oversold: Could It Attain a Bounce This Month?

Amidst the severe down move, the ATOM price capped in a narrow range and witnessed low investor interest, leading to price consolidation.

However, the ATOM price looks oversold, and a short-term pullback toward the 50-day EMA mark might soon be seen.

This week, the Relative Strength Index (RSI) curve saw a positive crossover and retained the midline region.

Per the Fibonacci retracement levels, the Cosmos price trades close to the 23.6% zone and is below the mid-bollinger band.

Source: Santiment

Amidst the range-bound movements, the trading volume remained flat and spiked over 11% to $83.65 million. 

Cosmos ranked at 50 per the market cap and has a total supply value of 329.10 million.

Sharpe Ratio Data Signifies a Negative Outlook

Due to the follow-on selloff and consistent downtrend, the Sharpe ratio indicator reveals a severe decline, and the data highlights a negative value of -1.96, implying underperformance over the past few trading sessions.

What Do Analysts Mention in Their Tweets?

A tweet by @Whale of City plotted a chart that guides a potential up move toward $10 might be possible in the upcoming sessions.

Notably, the ATOM price trades at its prompt support zone, which might act as a strong support and not be cracked easily by the bears.

$ATOM pic.twitter.com/V6btdOZ9b7

— ᴡʜᴀʟᴇ ᴏғ ᴄɪᴛʏ (@Whale_Of_City) June 3, 2024

Source: X

Similarly, a tweet by @Curious J reveals his dilemma regarding the price action in the bear market. However, he mentioned the short-term development activity boost, which might lead to a price surge ahead.

Idk man $atom may be in a bear market in price action but there is so much fucking development, so much building this shit is short term mindset.

– V17 with PSS launching
– elys, aether, and lorenzo to join
– asteroid expanding
– neutron defi growing (many atom funded protocols…

— Curious J (@Curious__J) June 4, 2024

Source: X

Development Activity and Contributors Count Insights

This month, amidst the minimal price fluctuations, the development activity data pumped over 25% to the 99.36 mark, signifying the positive outlook.

Source: Santiment

Their contributors’ count data also glimpsed an incremental move and surged to the 113 mark; a rise of over 33% was noted this week.

Futures OI Data Replicates Positive Outlook

Despite the range-bound price moves, the investors have begun to make fresh long positions and are looking for a significant bounce ahead.

The open interest surged over 4.36% to $116.88 million in the last 24 hrs, revealing an optimistic outlook.

The immediate support levels for the Cosmos (ATOM) are $8.20 and $8, whereas the key upside hurdles are around $9.30 and $10.

Conclusion

The Cosmos (ATOM) price stays calm and has yet to cross the 20-day EMA mark for a further incremental move. Still, the indecisiveness between the bulls and bears and uncertain price movements was witnessed.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.