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Cosmos Price Prediction: Is the bull run over?

  • ATOM price experiences the strongest decline of the year
  • Cosmos could be displaying early signs of a change in trend
  • Invalidation of the bearish thesis could arise from a breach above $15.00

ATOM price shows bearish signals that are hard to ignore. A much deeper decline could be on the way if market conditions persist. 

ATOM price showing a change of trend?

Cosmo price  (ATOM) is witnessing the strongest decline of the year as the bears have induced a 7% decline on the day. The bearish influx comes at the top of a recently established Uptrend that began during the last week of December and recovered 80% of lost market value.

Cosmos price currently auctions at $13.93. The bears are foraging another test of the 21 Day simple moving average. On three separate occasions during the bull run, the indicator did Provide support. However, the recent dive has breached a higher swing low at .$14.01sign93. The breach could be early evidence that a change of trend is underway.

While the price descends, the relative strength index Is declining towards the Midway point, which should just bullish divergences between price. Nonetheless, attempting to catch a knife at the current time would be severely risky as The cosmos price appears to be in free falling selling frenzy. 

If the 21-day SMA fails to hold support, a decline targeting liquidity levels as low as $10 could occur. The bearish scenario creates the potential for a 25% decline from the current Cosmos price.

tm/atom/1/9./22

ATOM/USDt 4-Hour Chart

Invalidation of the downtrend could occur from a breach of the recent swing high positioned at $15. In doing so, Cosmos would likely rally towards the psychological $20 level, resulting in a 46% increase in the current Cosmos price.

This video shows how Bitcoin price moves could affect ATOM price

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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