ATOM Analysis – Fibonacci to the rescue

In this ocean of dire news for the entire cryptocurrency market, the project Cosmos and its native currency ATOM resist thanks to mathematical technical supports. To analyse.

ATOM – Weekly chart: The Kijun in aid

After a tremendous technical rebound on a key support, located at $5.61prices stumbled on a weekly SSB dish at $16.66.

ATOM – Weekly Chart

This technical resistance has created a medium-term range situation, with support set at $11.12. This support is major. It is given by the fibonacci retracement and its golden ratio. Thus, the 61.8% and the 50% of this retracement are the two supports to keep in mind for the next few weeks.

The indicator MACD remains bullish even if its moving averages tighten, which shows a weakness in this technical rebound. Nevertheless, no sell signal is not sent. In addition, the decrease in volumes confirms that traders are waiting for an exit from above or below from this technical zone.

ATOM – Daily chart: Volatility at the rendezvous

The Cosmos project cryptocurrency is not immune to the general panic. For the past four days, the storm has been raging. For now, the Fibonacci retracement has helped support prices in these violent days.

With a magnificent bounce of 20% this Thursday, November 10prices recovered by stabilizing on the 50% Fibonacci retracement. However, the sell signal given by an exit under the daily cloud is to be taken into account. Because it indicates that the short term uptrend is now over. As long as prices do not return above $13.82.

ATOM – Daily Chart

As for the indicator MACDit also gives a seller signal, with a bearish crossover of its two moving averages. It is therefore necessary to carefully monitor the $11.12 as the main support. And the $9.74 as last support for this uptrend.

It is important to stress that the situation will not improve so little. LFTX case having done a lot of market-wide damage. It will be necessary for investors to remain patient for the next few weeks which promise to be eventful.

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