Jonathan Morgan
Independent Analyst
- Cosmos price has been consistently rejected against a critical Ichimoku resistance level.
- Today’s selling pressure is likely to find support near $29.
- A return to the $32 price level is essential for ATOM to pursue another bull-run.
Cosmos price is trading lower today, displaying the weakest daily candlestick since February 2. However, the drop here may be a test of resistance turned support.
Cosmos price may consolidate near $29 before pushing on towards $32.50
Cosmos price has been rejected against the bottom of the daily Ichimoku Cloud (Senkou Span B) for the past five consecutive trading days. In addition to that rejection, bears have been able to push ATOM below the 38.2% Fibonacci retracement. The results of this selling pressure put ATOM just above the Tenkan-Sen at $29.50.
The Tenkan-Sen is not only the primary near-term Ichimoku support level for Cosmos price – it is the only Ichimoku support level. Today is also the first test of the Tenkan-Sen as a source of support. Before the breakout above, the Tenkan-Sen on February 4 acted as the primary resistance level from January 18, 2022, to February 4.
A return to $32.50 would put Cosmos price above Senkou Span B and inside the Ichimoku Cloud. Senkou Span B is the strongest level of resistance and support in the Ichimoku system. The strength of resistance or support that Senkou Span B exhibits is exacerbated if it has been flat for an extended period of time. Therefore, a close at or above $32.50 would likely confirm a new uptrend is incoming.
ATOM/USD Daily Ichimoku Kinko Hyo Chart
If the Tenkan-Sen fails as support for Cosmos price, ATOM may return towards the December 2021 lows near $21.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
MANTA suffers 4% pullback after unlocking tokens worth $40 million
Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks.
XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says
The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30.
Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction
Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000.
If Bitcoin restarts bull run, these altcoins are likely to explode Premium
If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.