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Cosmos (ATOM) Correction Period Might Already Be Over

2 mins
Updated by Kyle Baird
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Since December 27, 2019, the ATOM price has been trading inside a descending wedge. It is currently in the process of breaking out of this pattern.

Cosmos (ATOM) Highlights

  • There is resistance at 50,000 and 65,000 satoshis.
  • The price broke down from an ascending support line.
  • It is trading inside a descending wedge.
  • There is support at 42,000 satoshis.
  • The price has possibly begun the third wave of a five-wave Elliott formation.
Technical analyst @Lomahcrypto outlined an ATOM price chart warning traders to pay attention to Cosmos since the price is very close to the resistance line of a descending wedge and a breakout could transpire very soon.

Ascending Support Line

The ATOM price has been following an ascending support line since Sept 6, 2019. It continued increasing until it reached the 65,000 satoshi resistance area on Dec 27. The price has been decreasing since and broke down from the ascending support line on Jan 24, 2020. Afterwards, it fell below the 50,000 satoshi area and validated it as resistance. It is currently trading right inside this area once again. ATOM Ascending Support Line

Descending Wedge

Since reaching the aforementioned high on Dec 27, the ATOM price has been trading inside a descending wedge. As mentioned in the tweet, the price is currently in the process of breaking out from this wedge. Volume has begun to pick up but is not extreme yet. ATOM Descending Wedge If the breakout transpires, which is looking likely, the price would be expected to go to 56,000 satoshis which was the 0.618 Fib level of the entire decrease before returning to validate the 50,000 satoshi area as support. Wedge Breakout

Long-Term Movement

Looking at the weekly chart, we can see that the correction has possibly ended at the 0.5 Fib level, right at 42,000 satoshis. This is a very likely place for a reversal. The current weekly candlestick is bullish engulfing, and if it closes above the prior wick it would have major bullish implications. ATOM Correction If so, the current movement since September 2019 could have been the first two waves, and the breakout from the wedge could be the beginning of the third wave. This move could make a top near 100,000 satoshis, very close to an all-time high. ATOM Future Mvoement To conclude, the ATOM price is in the process of breaking out from a descending wedge. This could be the beginning of a longer-term third wave that could possibly take the price to a new all-time high.
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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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