Cosmos (ATOM) Weekly Analysis: Descending Channel Points Toward $7.23

Cosmos (ATOM) remains in a firm weekly downtrend, defined by lower highs and lower lows. From a technical standpoint, the price trades below the 20, 50, 100, and 200 EMAs, confirming bearish dominance. Immediate downside targets sit at $2.40 and $2.20, with extended weakness opening the $1.80–$1.60 zone.

On the upside, any relief bounce faces resistance near $3.00–$3.20, where previous support flipped into supply. Stronger recovery targets stand at $3.95, $5.47, and $7.23, aligned with EMA clusters. A weekly close above these levels is required to signal a meaningful trend reversal.

Also Read: Cosmos (ATOM) Poised for Surge: Could Hit $3 Soon!

Descending Channel Continues To Guide Price

According to crypto analyst @JohncyCrypto, the weekly ATOM chart highlights a clear descending channel that has guided the price for a long period. Lower highs and lower lows confirm a sustained bearish trend. Every recovery attempt has stalled near the upper trendline, showing sellers remain in control across higher timeframes.

The price has recently touched the lower edge of the channel once again, corresponding with a strong horizontal zone of support between $1.80 and $2.10. This zone is causing a mild reaction upwards, with an increase in volume. This is more of a corrective move.

On the flip side, the $14–$15 area of resistance is also the top edge of the channel, making it a strong supply area. Anything that pushes towards this area could see some selling pressure. For the bearish pattern to be negated, a weekly close above the channel is needed.

Momentum Signals Remain Weak And Unconvincing

The RSI is at 38.88, below the neutral level of 50. This indicates bearish and weak momentum, and it is certainly not oversold. The RSI moving average at 32.21 indicates a slight bounce, but the momentum remains weak. Historically, significant rallies have only occurred after the RSI has moved above 45-50 on the weekly chart.

The MACD line is still below the signal line, and the histogram is only slightly positive. This indicates that there is weak bullish divergence, but there is no signal for a trend change yet. In past cycles, it has been observed that for a strong upward movement, there has to be a clear signal from the MACD crossover, along with an increasing green bar on the histogram for ATOM.

Also Read: Support Still Holds Up for Cosmos (ATOM): Is a Surge About to Happen?