The Cosmoverse event promised new developments, including an interchain security
Cosmos native token ATOM has been falling after the event
ATOM is bearish, but we should remain keen on technical levels
If you consider adding positions in Cosmos ATOM/USD, key technical indicators may not be convincing. Of course, ATOM has been one of the strongest cryptocurrencies since June. It has defied all bear flags in the sector to remain on an uptrend. However, it has now broken below its almost 4-month ascending trendline.
We all know that ATOM’s gains preceded the Cosmoverse conference held on September 26-28. A white paper release for the conference proposes significant utilities for the Cosmos ecosystem. Also dubbed Cosmos 2.0, the development will introduce an interchain security feature. The security feature has been a long-standing issue for users. The white paper also calls for changes in the issuance schedule and utility of ATOM, the native token. These changes were at least expected, and that’s why the native token was gaining ahead of the conference.
Now getting back to the basics, investors are known to price assets ahead of anticipated pronouncements. Whereas Cosmos 2.0 promises major improvements to the ecosystem, the short-term speculations seem to have waned. Consequently, ATOM trades at $12.68, a drop from $16.95 a week before the Cosmoverse event.
Atom loses ascending trendline for the first time since June
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Source – TradingView
A slip below an ascending trendline confirms a bearish move for ATOM. The drop happened after ATOM lost an important $13.3 support. However, bulls should remain optimistic.
ATOM fell to another support at $12.0, but the bulls are defending the level. The token has recovered slightly above the level. The RSI shows a slight upside with no oversold conditions.
It is not yet time to buy ATOM, though the cryptocurrency shows some stabilization. The $12.0 and $13.3 are the levels to watch for bullish reversal signals.