Cosmos struggles to recover with RSI giving a Sell signal: weekly analysis

Traders Union
All News
Crypto News
Cosmos falls 14.97% this week

Highlights

ATOM trades decisively below major moving averages, indicating persistent downside momentum and seller dominance across all time frames.
Momentum and oscillators confirm a strong bearish trend, with no key indicators signaling a probable reversal in the near term.
Expected price action is range-bound between $1.68 and $1.85 with a high risk of further declines if $1.68 is breached.

Ecosystem development optimism after Cosmos Labs acquires Mintscan

Cosmos Labs, the main development team for Cosmos, announced the acquisition of Mintscan, a blockchain explorer, to further develop and enhance transparency within the Cosmos network. This acquisition is positioned as a step to strengthen the blockchain ecosystem.

Bearish weekly momentum confirmed by technical indicators and volatility spike

On the weekly chart, all moving averages are aligned above ATOM, confirming dominant downward momentum: the MA-20 stands at $1.9106, MA-50 at $2.9031, and MA-200 at $7.1389, with price below all of them. Weekly volatility reached 19.45%, with price closing near the bottom of the range. The RSI sits at 39.3, giving a Sell signal, and both the MACD and ADX reinforce a strong negative trend, while Stochastic RSI and CCI suggest neutral-to-oversold conditions, limiting the prospect of immediate recovery. Bull/Bear Power remains barely positive at 0.04 with a rare contradictory Buy signal, but overall weekly momentum stays firmly bearish.

Range-bound outlook for next week amid persistent bearish momentum

For the next 7 days, ATOM is expected to remain range-bound within $1.68 to $1.85, anchored by weak momentum and generally bearish technicals. A reversal appears unlikely, with fewer than 20% odds for a sustained move higher, as none of the four key indicators issue a Buy or Strong Buy signal. Main trading scenario is for price to linger in this corridor, while a substantial move above $1.85 would indicate a bullish shift — though signals do not favor this path. If selling pressure increases and $1.68 breaks, further downside and new support testing are likely.

Jainam Mehta, market strategist, notes that Cosmos (ATOM) logged a steep 14.97% weekly drop, remaining decisively below all major moving averages and showing little evidence of reversal momentum. He sees the week’s volatility and oversold readings as a sign that sellers remain dominant, with the asset caught in a bearish technical corridor between $1.68 and $1.85. Despite the network’s Mintscan acquisition aiming to boost ecosystem fundamentals, chart action stays unconvincing for a material bounce. "In the coming week, I am watching for a break of $1.68 or a surprise push above $1.85 — until then, I’m staying patient and protecting capital within the range."

Earlier, analysts noted that Cosmos was locked in a persistent bearish trend with sustained downside risk. The latest technical and momentum signals reinforce this outlook, suggesting traders should be alert for a potential breakdown below the $1.68 support, which could open the door to further declines.

Source of Data: ATOM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.