• Cosmos price action is still on its path to the downside after a firm rejection against the monthly pivot at $33.00.
  • ATOM bears can push price action today below the important 200-day SMA, making it a dangling candle for a full retrace to $25 or $24.
  • Expect the week to close with at least a 16% loss on the books. 

Cosmos (ATOM) price action is not really enjoying its week so far and looks set to close it off with a loss as bulls were unable to push price action above the monthly pivot at $33.00 and, in the process, opened the door for a bull trap, rejection and fallback of price action below $30.00. To make matters worse, bulls cannot keep price action above the 200-day Simple Moving Average (SMA) around $30.00, which opens the door for a drop towards $25 or $24, shedding 16% of value in the process.

ATOM bears have still plenty of room to push the price to the downside according to the RSI

Cosmos price action is getting battered this week after bulls tried to push price action above $33.00 but failed and, in the process, handed the keys over to the bears who pushed price action below $30,00 or booked roughly 11% gains on their short positions. With the Nasdaq and global markets back in the red zone, ATOM price is in there as well, with price action today failing to stay above the 200-day SMA. As the daily candle dangles below that 200-day SMA, the road is open for a complete retrace. 

Expect bears to push Cosmos price action further to the downside as they receive help from some negative headwinds that keep investors away from the price action. The first halt looks to be $25.53, which is the double bottom from last week and looks to hold some importance short term. In case equity markets start to tank even further below current session lows, expect another leg lower towards $24,00 with the green ascending trend line offering plenty of support to halt the drop –  by then, the Relative Strength Index will have hit the oversold level as well.

ATOM/USD daily chart

ATOM/USD daily chart

As for now, the 200-day SMA is still in reach and could see bulls succeed in reclaiming it later in the trading session should the US indices erase their red numbers. That would see some renewed interest in Cosmos price action and see a possible paring back of the losses with a close towards or near $32.00. This would then set the scene for a possible break above $33.00 at the start of trading next week.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price: Watchout for 30% decline in Bitcoin price, according to this indicator

Bitcoin price: Watchout for 30% decline in Bitcoin price, according to this indicator

Bitcoin price surpassed the key psychological barrier at $19,000 and sustained above this level. American businessman and author Robert Kiyosaki believes that it is a buying opportunity for BTC.

More Bitcoin News

Dogecoin Price Prediction: DOGE to revisit $0.65 to rebalance inefficiency

Dogecoin Price Prediction: DOGE to revisit $0.65 to rebalance inefficiency

Dogecoin price underwent a tight consolidation between September 28 and 30, which eventually resulted in an explosive move up that collected the buy-stop liquidity resting above the September 27 swing high.

More Dogecoin News

Litecoin price set for a profitable week in a battered quarter

Litecoin price set for a profitable week in a battered quarter

Litecoin (LTC) price is set to jump higher this week as markets see bulls storming out of the gate this Monday morning. After a very volatile two weeks where the world seemed to be on fire again and the apocalypse was near.

More Litecoin News

Terra LUNA Classic price could crash 60% despite burn announcement and Coinbase, Robinhood listing rumors

Terra LUNA Classic price could crash 60% despite burn announcement and Coinbase, Robinhood listing rumors

LUNA Classic (LUNC) is the new shitcoin and has overtaken Shiba Inu's popularity, becoming a retail favorite. After Binance announced the LUNC burn program on September 26, the altcoin surged 66% and is currently hovering above another stable support level. 

More Terra News

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP