Cosmos (ATOM) Shows Strength After Reclaiming Price Support

Cosmos (ATOM) price started a reversal on March 10 and is now trading close to long-term resistance levels.

ATOM is the native token of the Cosmos ecosystem, which aims to serve as the Internet of Blockchains. The weekly time frame is mixed for ATOM. The price has declined since hitting an all-time high of $46.68 in September 2021. The decline ended with a June 2022 low of $5.54.

However, the price has risen since then, reclaiming the $9 area and validating it as support in December of the same year, making a higher low (green icon) in the process.

While this is considered a bullish development, and the weekly RSI has not broken its bearish divergence trend line (green), the indicator declined below 50 shortly after. Hence, the bullish reversal is yet to be confirmed.

In any case, if the upward move continues, the nearest resistance area will be at $21.30, formed by the 0.382 Fibonacci retracement resistance level and a horizontal resistance area. This level has not been reached since February 2022.

Cosmos (ATOM) Price Long Term
ATOM/USDT Weekly Chart. Source: TradingView

Cosmos (ATOM) Price Correction Completed

Technical analysis is bullish on the daily time frame. ATOM price completed an ABC corrective formation, in which the ratio of waves A:C was exactly 1:1.61. This is the second most common ratio in such reforms. The price has risen since completing a correction on March 10 (green icon), also validating the $10.30 area as support.

Furthermore, the daily RSI broke above its bearish divergence trend line (green line) during this increase. This is considered a bullish signal that often precedes an extended upward move.

As a result, an increase towards the descending resistance line at $14.30 is the most likely scenario. If the price breaks the resistance line, it could continue to rise towards the $16.80 horizontal resistance area.

On the other hand, a break below the March 10 low of $10.29 would invalidate this bullish forecast. In that case, ATOM token price could decline to the next closest support at $8.80.

Cosmos (ATOM) Wave Count
ATOM/USDT Daily Chart. Source: TradingView

To conclude, the most likely Cosmos price forecast is an increase towards the resistance line at least $14.30 and possibly $16.80. However, a close below $10.30 would invalidate this bullish forecast. In that case, the price of ATOM would drop to $8.80.

For the latest crypto market analysis from BeInCrypto, click here.


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

Source link

Leave a Comment