- Cosmos (ATOM) started a significant rise on May 10th.
- The price movement indicates the possibility of short-term decline and long-term growth.
- The downward break of the current trend may reverse the minor trend and disappoint Cosmos on the daily chart.
Cosmos (ATOM) price has been trading in a bull market since March and rose sharply on May 10th, but will the price movement continue?
For the bull structure to be maintained, the ATOM price needs to stay above the current support level and start moving towards the nearest resistance.
Cosmos Price Rose from Trend Support
Since March 14th, the ATOM price has experienced price declines within a falling trend. The falling wedge is considered a bullish formation as it is the most likely scenario for an upward trend.
The price movement within the wedge also supports the possibility of an upward trend. The price rose three times on the support line of the wedge, creating long lower wicks each time.
Such wicks are considered signs of buying pressure as sellers were unable to lower the price until the end of the period.
The wicks also overlap with the long-term horizontal support area of $10.50, increasing their validity.
Although the price found support from the lower trend support, it has not yet been able to break the upper downtrend line. Looking optimistically, there have been candlestick closures above the 50 MA on the 3-hour chart, but if the price movement continues horizontally and breaks the 100 MA downwards, minor bears may want to suppress the price at the $11 level.
At this point, Bitcoin price movements should be closely monitored.
Cosmos/Tether Daily Price Chart: ATOM’s Potential Bull
Looking at the daily chart of Cosmos price, we can see that the price is above an important downtrend. As long as the daily closing remains above the fibo support, it will aim for the $12,683 region. However, a possible market decline may lead us to the cleaning of LONG positions at the $10 level.
If we think positively, the next stop for the $12,683 target will be $13.5. We see that the 50-day MA is leaning towards 11.295. When this coincides with the 0.382 fibo, a retest of the 11.211 level, which was the top of the previous day’s candle, may be requested, but the cost may be heavy if the BTC movement does not support it.
