Cosmos [ATOM]: Is the long-term bearish bias coming to an end?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

ATOM’s bearish momentum had the bears with the upper hand at the time of writing
However, ATOM could see a reversal as more traders held longer positions

ATOM’s bearish momentum from mid-March has seen the altcoin’s price drop by over 20%. Despite a bullish rally in mid-April, the intense selling pressure has seen ATOM crash to $10.51, as of press time.

Read Cosmos’ [ATOM] Price Prediction 2023-24

While Bitcoin [BTC] and the general crypto market experienced mild gains in the past few days, ATOM’s price has remained around this key support level. What can traders expect next?

Bearish momentum stalls at key support level

Source: ATOM/USDT on Trading View

Bears have retained the upper hand in dictating ATOM’s price movement over the past three months. However, ATOM’s recent price action showed that bears have found the $10.56 price zone very tough to crack. This price zone heralded ATOM’s price rally in January, reiterating the strength of buyers at this support level.

Generally, the retests of a support level after the first test are weaker, but bulls have refused to give up their hold of the $10.56 support level. Price has hovered above and under this support level for the past seven days to hint at waning selling pressure.

While bulls haven’t been able to trigger a sustained reversal from this level, on-chart indicators hinted at its potential. The On Balance Volume (OBV) indicator maintained a slight uptrend which suggested demand was present for ATOM. Although the Relative Strength Indicator (RSI) dipped under the neutral 50, it stood at 42 to also hint at a possible reversal.

The 12-hour chart showed that a signi

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Author: Suzuki Shillsalot

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