Cosmos: Is taking a short position on ATOM the way to go

ambcrypto.com:

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

After hitting its ATH on 7 January, Cosmos (ATOM) bears have stepped in to exert consistent pressure. The gradual decline below its multi-month long trendline resistance (previous support) gave sellers the well-needed strength for a trend-altering reversal.

ATOM is now in a tricky spot. The 23.6% Fibonacci resistance could reshape the trajectory of the near-term trend. At press time, ATOM was trading at $11.67, up by 3.08%in the last 24 hours.

Source: TradingView, ATOM/USDT

The recent bearish phase (from its April highs) led the alt to lose more than 71.4% of its value and plunge towards its 10-month low on 12 May. The drop below the eight-month-long trendline support flipped the trajectory in the sellers’ favor. Thus, they found renewed selling pressure to fuel the bearish fire.

The downfall pushed the alt below its 20-50-200 EMA on the daily timeframe. The 20 EMA alongside the Fibonacci resistances has restrained all bullish revival endeavours over the last month. Keeping in mind the recent rejection of higher prices at the 23.6% level and the widening gap between the EMA ribbons, the bears claimed to have a superior edge.

A series of candles above the Point of Control (POC, red) could lead the altcoin into a short-term tight phase. Any close below this mark would re-open a path towards the $9.6-level support before a bullish comeback possibility. Looking at the overextended gap between the 20 EMA and 50 EMA, the bulls would aim to push for more after a likely sluggish phase in the days to come.

Source: TradingView, ATOM/USDT

The RSI poked its record low on 12 May and revived from this level as