2023-3-9 17:00 |
The Cosmos (ATOM) price failed to sustain its breakout, signaling that lower prices could follow soon.
ATOM is the native token of the Cosmos ecosystem, which aims to function as an internet of blockchains. The Cosmos (ATOM) price has decreased since reaching a high of $15.45 on Feb. 3. The decrease led to a low of $10.76 on March 9.
More importantly, the Cosmos price failed to remain above the descending resistance line from which it previously broke out. This is considered a bearish sign since the breakout could not be sustained. Moreover, the ATOM token price fell below the 0.618 Fib retracement support level at $11.10. Finally, the daily RSI is decreasing and is below 50.
All these signs suggest that the trend is bearish, and the downward movement will continue. In that case, the closest support area would be at $8.50.
Reclaiming the $11.10 support area and the previous resistance line would invalidate this bearish forecast. In that case, the ATOM coin price could increase to $15 again.
ATOM/USDT Daily Chart. Source: TradingView Cosmos (ATOM) Price Breakdown Shatters Bulls HopesThe six-hour chart shows that the ATOM price broke down from both a descending parallel channel and an ascending support line (dashed). This puts a dent into bulls’ hopes for a reversal and supports the continuation of the downward movement.
The only possibility of a reversal is if the drop is an A-B-C correction in which waves A:C have a 1:1.61 ratio. This would lead to a low of $10.33 before a reversal. However, both breakdowns make this unlikely. Moreover, while the six-hour RSI is oversold, there is no bullish divergence yet.
Therefore, it seems unlikely that the ATOM price will bounce at $10.33. Rather, the continuation of the decrease toward $8.50 is more likely.
ATOM/USDT Six-Hour Chart. Source: TradingViewTo conclude, the most likely ATOM price forecast is a decrease toward $8.40. This bearish outline would be invalidated by a sharp bounce at $10.33 and an increase above $11. In that case, the Cosmos price could move to $15.
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The post Cosmos (ATOM) Price Flops 30% to New Yearly Low, Could Drop Further appeared first on BeInCrypto.
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