Cosmos: Assessing ATOM’s potential to rebound from this defending zone

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

After attaining its all-time high (ATH) in January 2022, Cosmos’ [ATOM] price declined after falling prey to the bearish clutches. For instance, April-June witnessed a solid bear run that pulled the altcoin toward its multi-monthly lows on 19 June.

Here’s AMBCrypto’s price prediction for Cosmos [ATOM] for 2023-24

While the recent price movements have marked gradual growth in the last four months, ATOM still struggled to maintain its position above the 20/50/200 EMA.

A rebound from its immediate support range could aid the alt in retesting the confluence of resistances in the four-hour timeframe. The bullish divergences could propel ease in selling pressure. 

At press time, the alt traded at $12.143, down by 2.19% in the last 24 hours.

ATOM approached its support zone, can it find a reliable rebound?

Source: TradingView, ATOM/USDT

The rebound from ATOM’s 20-month low in June set the foundation for a sturdy recovery on the charts. These bullish efforts aided the token in finding a spot above the 200 EMA as they flipped it to support. After testing this support multiple times, the alt failed to maintain the broader bullish edge.

The long-term ascending channel aggravated the selling pressure to induce a patterned breakdown. As a result, the price quickly dropped below the EMAs exhibit bearishness.

With the price action approaching its immediate support range in the $11.9 zone, it could see solid near-term reversal provided it breaches the constraints of the 20 EMA. A close above this level would open buying opportunities with a target in the $13.2 range.

But the bearish crossover on the 20/50 EMA