Cosmos (ATOM) has experienced a short-term uptrend on May 10th, 2023. The asset gained a rise of 10.89%, and the price reached its highest point at $11.2. However, bears regained control of the market on May 13th, sending Cosmos (ATOM) down to its current price of $10.40, a drop of 1.12%. Since the beginning of May 2023, ATOM has seen a price drop of 11.2% based on the current price.
The ATOM/USDT daily chart indicates that market sentiment towards Cosmos (ATOM) is predominantly bearish. It also shows a downward movement of the price, which dominates and hinders any potential uptrend.
The price of ATOM has been negatively affected by its recent chaotic legal battle with former Chief Growth and Strategy Officer, Grace Yu. The news caused a negative sentiment among investors and market participants towards Cosmos (ATOM). Validators even urged Cosmos founder Kwon Jae to drop the case against Grace Yu. This action points to a certain level of concern within the Cosmos community.
A negative sentiment towards an asset can influence investor behavior, decrease demand for ATOM, and possibly contribute to a downward pressure on its price.
For instance, ATOM has been in a downtrend since April 17th, indicating a bearish sentiment. The trendline now serves as a reference for identifying potential resistance levels as the asset has tested it extensively.
Cosmos (ATOM) is trading between support and resistance levels of $10,160 and $11,301. Breaking the primary support level of $10,160 by ATOM will confirm the bearish dynamics. The bears could then aim for the next support level of $8,441.
However, the bulls are vigorously trying to push the price up to the primary resistance level of $11,301, but they are failing due to the strong bearish dynamics.
ATOM is trading below its 200-day and 50-day Simple Moving Averages (SMA), indicating a bearish market sentiment. This level suggests that ATOM's recent and long-term price averages are falling, possibly pointing to a negative trend and a higher likelihood of further downward price movement.
Meanwhile, the Moving Average Convergence Divergence (MACD) confirms the bearish market sentiment as the asset is trading below the signal line. This suggests that the short-term moving average is moving lower than the long-term moving average, indicating a downward trend.
As for the Relative Strength Index (RSI), it is indicating a neutral market sentiment with a value of 43.29. The indicator indicates that the price is neither overbought nor oversold. Currently, the ATOM price outlook is pessimistic. However, cryptocurrency assets are volatile and can deviate from the predicted price trend without warning.
In conclusion, Cosmos (ATOM) is currently experiencing a bearish market sentiment due to its recent legal battle with Grace Yu. The negative sentiment can influence investor behavior, decrease the demand for ATOM, and possibly contribute to a downward pressure on its price. However, cryptocurrency assets are volatile and can deviate from the predicted price trend without warning.
