Cosmos (ATOM) has been in a critical technical phase as of Thursday, January 29. This is because price action has been testing the upper limit of a long-term descending channel in the latest price movement.
According to crypto analyst Crypto Pulse, this resistance has been a major barrier to several bullish moves in the past few months.
The focus now is whether the token can hold up above the channel or fall back inside it. If it fails to hold up above resistance, it would only add to the overall bearish view, especially with momentum in the Layer-1 altcoin space remaining weak.
Source: Crypto Pulse X Post
However, if the rejection continues and the price declines from this level and goes below the channel resistance, the price is likely to fall towards the lower end of the channel.
The price level of $1.50 is a major support level because it has been a major support level in the past during declines. A move towards that level would likely signal renewed weakness rather than a trend reversal.
Also Read: Cosmos (ATOM) Poised for Surge: Could Hit $3 Soon!
ATOM Technical Indicators Point to Consolidation Phase
According to TradingView data, as of Thursday, January 29, the weekly chart for ATOM continues to show a clear bearish structure. Since the 2024 top, the price has continued to make lower highs and lower lows.
The recent weekly candles have been consolidating in the $2.10-$2.20 range, which is currently providing short-term support following the significant decline from the $4.50-$5.00 range.
Source: TradingView
The momentum indicators continue to be under pressure. The Moving Average Convergence Divergence (MACD) indicator is still below the zero line, and the MACD and signal lines are running close together, suggesting weak bearish momentum rather than any sign of recovery. The Relative Strength Index (RSI) is still at 33, just above the oversold region.
Fetch.ai Brings Rapid Setup to Cosmos via FetchCoder
Fetch.ai has announced the release of a new development demonstration on Thursday, January 29. It is based on the ease of application deployment within the Cosmos ecosystem. The demo is based on the release of FetchCoder, which is aimed at easing the deployment time of Cosmos-based projects.
As part of the demonstration, FetchCoder is able to install dependencies, query live data from the Fetch.ai network, create smart contracts, and deploy test code in a matter of minutes.
The update underscores the further infrastructure work that is being done within the larger Cosmos ecosystem, which has already established itself as a developer-friendly space that is well-suited for scalability, automation, and speed in decentralized finance, AI, and Web3 infrastructure.
Also Read: Cosmos (ATOM) Forecast: Relief Rally Could Push Price to $3.02
