Cosmos (ATOM) USD Price analysis with interactive analytical tools and studying chart patterns. The chart references the Cosmos (ATOM) price from the Coinbase exchange.
About Cosmos (ATOM):
Cosmos is a decentralized network of independent parallel blockchains, each powered by the BFT consensus algorithm – Tendermint consensus.
In other words, Cosmos’s vision is to make it easy for developers to build blockchains and break the barriers between blockchains by allowing them to transact with each other. The end goal is to create an Internet of Blockchains, a network of blockchains able to communicate with each other in a decentralized way.
Helpful Cosmos (ATOM) USD Technical indicators:
Technical Analysis through the use of charts or volume helps to forecast future price trends, however, do remember always that analysis can’t make absolute predictions about the future. Therefore, trade with caution.
The following are some of the technical indicators which could be useful for anticipating the most likely Cosmos (ATOM) USD price movement.
Moving average convergence divergence (MACD)
MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD called the “signal line”, is then plotted in addition to the MACD line which together functions as a trigger for Cosmos (ATOM) USD buy and sell.
- Traders may buy the Cosmos (ATOM) when the MACD crosses above its signal line (orange line) and,
- Sell, or short, the Cosmos (ATOM) when the MACD (blue line) crosses below the signal line.
Another MACD strategy is to look at which side the MACD lines are. Either, above zero for a sustained period of time, and the trend is likely up, or below zero for a sustained period of time, and the trend is likely down. Potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.
Relative Strength Index (RSI)
RSI is an indicator that evaluates overbought or oversold conditions in the price of an asset. The RSI is a line graph that moves between two extremes and has a reading from 0 to 100.
Traditional usage of the RSI is that:
- Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in the Cosmos (ATOM) USD price.
- An RSI reading of 30 or below indicates an oversold or undervalued condition.
Moving Average (MA) of Cosmos (ATOM) USD Price
MA is the average of the closing USD price of an asset – Cosmos (ATOM) over a given number of periods. The 200-day simple moving average is one of the most-watched activities in the price charts by mostly all experienced traders. There are two basic signals in relation to the moving average:
- If the price is above the X day SMA, this signals a bullish movement.
- If the price is below the X day SMA this signals a bearish movement.
Cosmos (ATOM) USD Price MA(50,200) Crossovers
Another important signal that these moving averages send is a crossover between the 50-day and the 200-day moving averages.
- Essentially, a bullish crossover (the 50-day MA crosses above the 200-day MA) is called a golden cross. It signals that a new bullish Cosmos (ATOM) USD price trend is starting.
- A bearish crossover (where the 50-day MA crosses below the 200-day MA) is known as the death cross. This is a sign that a bear market may be starting.
On balance volume (OBV)
OBV is another technical trading momentum indicator that uses volume flow to predict changes in the asset price. Ideally, the volume should confirm trends. A rising price should be accompanied by a rising OBV; a falling price should be accompanied by a falling OBV.
- OBV is rising and the price isn’t, the price is likely to follow the OBV and start rising.
- Cosmos (ATOM) USD price is rising and OBV is flat-lining or falling, the price may be near a top.
- Cosmos (ATOM) USD price is falling and OBV is flat-lining or rising, the price could be nearing a bottom.
Chart Patterns
- Head and Shoulders
- Cup and Handle (bullish)
- Triangles (Symmetrical, Ascending (usually bullish), and Descending)
- Double top and bottom [M (bearish) and W (bullish)]
- Triple Tops (bearish) & Bottoms (bullish)
