ATOM: Assessing the odds of a long-term downtrend prevailing

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.

Bitcoin [BTC] climbed past the $20k mark, but even at the time of writing, the price dipped back to $19.9k. This highlighted how important a resistance of $20.2k-$20.8k was for BTC. Cosmos [ATOM], like many other altcoins, has a habit of climbing higher on the charts alongside Bitcoin. Therefore, any weakness from the king would likely be reflected in the price action of ATOM itself.

Source: ATOM/USDT on TradingView

On the 12-hour chart, it can be seen that the past two months of trading have been part of a steady downtrend. Even though ATOM managed to bounce from $5.55, the longer-term trend remained unchallenged.

In order to flip the bias from bearish to bullish, the price would have to climb past $10 and retest the $9.5 area as a demand zone. The Relative Strength Index (RSI) was above neutral 50 to show that the past few weeks had some bullish momentum.

The On-Balance Volume (OBV) had also crossed above resistance from mid-May and suggested that demand was behind the rally from the $6 zone.

Source: ATOM/USDT on TradingView

On the four-hour chart, the entire area from $8.7-$9.5 has seen significant trading activity early in June. This demarcated this area as a zone of supply where sellers would likely be strong.

At the same time, the past three weeks have seen ATOM form a series of higher lows and higher highs on the price charts, suggesting a bullish move. Yet, would this initiate an uptrend, or was this a pullback before another slide downward for ATOM?

The higher timeframe charts showed that ATOM would need to climb above $10 and $12.4 to flip the bias from bearish to