Cosmos (ATOM) Price Rebounds but Is Not out of the Woods Yet

The Cosmos (ATOM) price broke down from an ascending support line, indicating that the upward movement in place for more than a month has ended.

ATOM is the native token of the Cosmos ecosystem. The ATOM price has increased since Dec. 16. The upward movement led to a high of $15.45 on Feb. 3, causing a breakout from a long-term descending resistance line. 

Afterward, the ATOM price fell but bounced at the descending resistance line (green icon), validating it as support. 

A bearish divergence in the daily RSI (green line) preceded the entire downward movement. The divergence trend line is still intact. In order for the upward movement to continue, ATOM has to break this trend line. 

If that occurs, the ATOM price will likely move above the $15.50 resistance and increase toward $20. 

On the other hand, if the price falls below the descending resistance line, it could drop to the next support at $11.50.

ATOM/USDT Daily Chart. Source: TradingView

Cosmos (ATOM) Price Could Retrace Further

A look at the short-term six-hour price action shows that the Cosmos price broke down from an ascending support line. The breakdown likely marked the end of a five-wave upward movement (black). If so, the ATOM token price is now in an A-B-C corrective structure.

Therefore, it will continue its B wave increase toward the ascending support line at $15 before falling and completing the correction. The most likely level for the correction to end would be between $11.13-$11.95, the 0.5-0.618 Fib retracement support levels. Afterward, the increase could continue. 

A fall below the $8.43 low would invalidate the long-term bullish outlook and could send the ATOM price toward $5. On the other hand, an increase above the Feb.2 high of $15.45 could send the Cosmos price toward $20.

ATOM/USDT Six-Hour Chart. Source: TradingView

To conclude, the Cosmos price is expected to increase toward $15 before falling and completing its correction between $11.12-$11.95. A breakout above $15.45 would negate this bearish forecast and could send the ATOM price to $20.

For BeInCrypto’s latest crypto market analysis, click here.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Bookmark (0)

Related Posts

Ex-Coinbase CTO Claims US Dollar is No Longer Too Big to Fail, Touts Bitcoin

Coinbase former CTO Balaji Srinivasan said the US Dollar (USD) is not too big to fail.
Srinivasan expects Bitcoin (BTC) to replace it as the global reserve currency.
The US Dollar Index is down 8.9% in the last 6 months and has lost 1.34% of its value in the past year.

Bookmark (0)

Federal Reserve Slams Custodia Bank, Says it Endangers Crypto Industry and Itself

The Federal Reserves has detailed why it rejected Custodia’s bank application.
Custodia countered that its model prevents the kind of bank run that recently bedeviled the banking industry.
The bank further claimed the Feds statement showed its general bias against digital assets.

Bookmark (0)

Decentralized digital identities and credentials are key to mass Web3 adoption

As the world of Web3 emerges, decentralized digital identities present a promising alternative to the current.

Bookmark (0)

The Cayman Islands: A Safe Haven for Blockchain Companies?

Cayman Islands vs. Bahamas: How the FTX scandal impacted both jurisdictions.
The regulatory landscape and tax benefits of the Cayman Islands.
Importance of transparency and reputation in offshore financial services.

Bookmark (0)

What is fiscal policy, and why does it matter?

Fiscal policy shapes economies through government spending, taxation and borrowing.

Bookmark (0)

Litecoin (LTC) Retains Whale Interest Despite Recent Price Retracement, but Can It Reclaim $100?

Litecoin cleared $100 for the first time in 10 months before its recent correction.
Savvy whales have bought $280 million worth of tokens in the past month.
LTC average transaction size increased sevenfold in March.

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *