ATOM Price Analysis: Cosmos Under Bear Claw Plans Reversal?

Despite the high anticipations for an Uptober rally, the market has been slower with an increase in overall volatility in the market. In resonance with the market-wide move, the ATOM price fails to rise above the 50-day EMA and continues the downtrend.

With such strong selling pressure available, the ATOM price prediction warns of a prolonged downtrend in the falling channel. 

Taking constant rejections from the 50-day EMA, the lower high formations are prominent in the ATOM price chart. With such overhead bearish pressure, the Cosmos prices form a falling channel pattern in the daily chart. 

The recent bullish reversal from the support baseline teased a jump to the overhead trendline. However, a double top pattern forming peaks at the declining 50-day Exponential MA leads to an early downfall. 

Currently, the ATOM price trades at $6.626 with an intraday move of -1.13%, teasing a downtrend continuation today. 

Technical indicators:

EMA: The declining trend of the 50 and 200-day EMAs continues post-death cross, signaling a downtrend in the long term. Moreover, the 50-day EMA continues to provide dynamic resistance and keeps the bullish growth under check. 

RSI indicator: The daily RSI line crosses under the halfway line, reflecting a strong increment in bearish sentiments. 

Will The ATOM Price Fall Back?

The ATOM price continues to fall within the bearish channel, fueled by the overhead supply and the market-wide correction. With such a decline in the Cosmos market value, the chances for a bullish reversal are growing slim. 

Despite the possibility of a bullish reversal from the support trendline, a possible reversal from $6.40 can help out the Cosmos trend. If buyers can rebound, the uptrend will renew the positive cycle with increased chances of rising above the dynamic resistance. 

On the other hand, the deep correction rally will find crucial support levels at the $6.25 and $6 marks.