2023-2-17 18:30 |
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 FurtherA 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: TradingViewTo 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.
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The post Cosmos (ATOM) Price Rebounds but Is Not out of the Woods Yet appeared first on BeInCrypto.
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