Cosmos reaches support that will push ATOM price to $32.50
- 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.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
