- The popular altcoin Cosmos is up more than 60% last week.
- The latest uptrend seems to be approaching extinction, according to analysts.
- An increase in selling pressure could push ATOM to $28.
The popular altcoin Cosmos seems to be on the verge of losing an important support level that could lead to significant losses. The pessimistic outlook for ATOM is further confirmed by a technical indicator and a developing bearish pattern on the token’s 12-hour chart. As Kriptokoin.com, we have compiled the details for you, let’s examine the subject together…
Popular altcoin Cosmos is facing a possible comeback!
Cosmos looks poised to post losses over the weekend as multiple bearish signals appear. Interoperability network ATOM had a major rally last week. The 20th largest cryptocurrency by market capitalization has risen more than 60% since February 24. It now appears that Cosmos is tied for a bullish breakout that could trigger a steep drop in profit taking. The recent upward price action seems to have resulted in the formation of an ascending wedge on ATOM’s 12-hour chart. Cosmos may be preparing to break support as it nears the top of the model.
A decisive close below the lower trendline of the wedge could result in a 14.4% correction towards $28. The Tom DeMark (TD) Sequential indicator adds confidence to the moody look. It currently offers a green nine candlestick on the 12-hour chart of ATOM, which is considered a sell signal. An increase in selling pressure could confirm the bearish formation, causing the one to 12 hour candlesticks to retrace. As Kriptokoin.com, we have previously reported in this article, over 25 cryptocurrencies and Bitcoin signals of the indicator in question have been correct in recent years.
Source: TradingView
ATOM can invalidate this thesis and rise!
Although the odds seem to be in favor of the bears, it is worth noting that ATOM may have a chance to invalidate this thesis. ATOM’s Fibonacci retracement indicator, measured from $21.50 on February 24 to $34.70 on March 4, suggests that a definitive 12-hour close above the recent high of $34.70 could give ATOM higher forward strength. In this case, the asset could rise to $38 or even $40, according to analysts.
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