- Cosmos price sees bulls abandoning control of the price action.
- ATOM is trading further away from the important moving average on the topside.
- Although it looks like bulls want to try and make a bear trap, the plan could blow up in their face.
Cosmos (ATOM) price is heading further away from the important 55-day Simple Moving Average (SMA), which has acted as quite a good guideline in the past few weeks and months. As that happens, price action is as well trading outside the pennant that has been going on since 2022. Although this looks like a bear trap, bulls could end up being the ones that get pushed out of their position with ATOM dropping 20%.
Cosmos price sees bulls playing with fire
Cosmos price has been stuck in a pennant formation for the most part of 2022 and 2023, and that same pennant is showing cracks. Already during these past few weeks there were brief breakouts with pullbacks back in the pennant’s barriers. This time could be different as bulls could go for a bear trap here.
ATOM though could be playing a whole other ball game this time as the 55-day SMA is starting to steepen to the downside, and the 200-day SMA is starting to show signs of a Death Cross formation. This means that price action could drop back to $10.21 and breach it this time. The end result will be a falling knife to $8.43 that brings a 20% loss with it.
ATOM/USD weekly chart
Bulls could still be victorious and pull the price action back into the pennant however. Should they be able to break back above both the 55-day and the 200-day SMA, the road would be open to cross to the topside and head toward $14 with a nice 30% price adjustment.
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.
Recommended Content
Editors’ Picks
GameStop, GME, shorts lose over $1 billion in mark-to-market losses on Monday amid meme-stock demand
GameStop short-sellers have lost $1 billion in the first hour of trading on Monday after 2,200% surge. Multiple exchanges reportedly had trouble processing orders following GameStop rally, GME paused due to volatility x3.
JUP price primed for a liftoff as Jupiter Exchange introduces LFG round 3 candidates
After a successful second round in May, the Jupiter Exchange has introduced candidates for its third launchpad (LFG). The Solana-based decentralized exchange (DEX) has been holding LFG votes to identify projects that will debut on its platform.
Top meme coins post gains following increased social activity amid GameStop pump
Meme coins in the crypto market saw impressive gains on Monday following a recent surge in GameStop stock. The increased attention surrounding these tokens signifies a potential resumption of the meme coin frenzy of March.
US Senators raise grave concerns over DOJ's policies towards cryptocurrency asset providers
Senators Ron Wyden and Cynthia Lummis wrote to the Attorney General to express worries over new policies on money transmission. The DOJ has continued to take strict measures against crypto asset software services over the last few months, says Senators.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.