Cosmos (ATOM) Price Stays Steady Above Support, but Fear of Collapse Remains

2 mins
17 November 2022, 11:15 GMT+0000
Updated by Geraint Price
17 November 2022, 11:15 GMT+0000
In Brief
  • ATOM is trading above long-term support at $8.80.
  • It is following a descending resistance line.
  • ATOM has completed an A-B-C corrective structure.
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The Cosmos (ATOM) price is trading inside a Fib and horizontal support level. There are no decisive signs in either direction.

ATOM is the native token of the Cosmos ecosystem. The ATOM price has fallen since reaching an all-time high price of $44.65 in Sept. 2021. It created a lower high in Jan. 2022 before accelerating its rate of decrease. Until now, Cosmos fell to a minimum price of $5.55 in June 2022. 

The price of Cosmos initiated a bounce afterward that is still ongoing. 

A significant development is reclaiming the long-term $8.80 horizontal support area. The area has intermittently acted as resistance and support since July 2020 (red and green icons). So, the June breakdown (red circle) is only a deviation due to the subsequent reclaim.

The weekly RSI is below 50 despite the ATOM price is trading above the $8.80 support area. So, whether the price breaks down or bounces will likely determine the future ATOM price prediction.

Cosmos (ATOM) Price Movement
ATOM/USDT Chart By TradingView

Cosmos (ATOM) Price Rise Loses Momentum

The daily time frame shows two other important resistance and support levels. Firstly, the ATOM price has followed a descending resistance line since Sept. 9. The line rejected ATOM on Nov. 5.

Afterward, the price fell to the 0.618 Fib retracement support at $10. This is both the 0.618 Fib retracement support level and a horizontal support area.

However, the daily RSI is bearish since it is below 50. As a result, whether the ATOM price breaks down from the $10 area or bounces will determine the future trend.

Cosmos (ATOM) Price Daily
ATOM/USDT Chart By TradingView

Wave Count Supports Bounce?

The wave count supports the possibility of a bounce. It shows that the ATOM price has completed an A-B-C corrective structure.

The fact that the waves have a nearly 1:1 ratio and the overlap (red line) of waves A and C support this being the correct count.

However, the count would be invalidated with a decisive close below the $10 support area. In any case, the wave count only suggests a short-term increase will follow, rather than a long-term bullish reversal. As a result, the direction of the long-term trend is unclear.

Cosmos (ATOM) Price wave count
 ATOM/USDT Chart By TradingView

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