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When Will ATOM Resume It’s Upward Trend?

2 mins
Updated by Ryan Smith
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In Brief

  • ATOM has broken out from a long-term descending resistance line.
  • There is support and resistance at 38,000 and 52,500 satoshis, respectively.
  • The price is following an ascending support line, in place since June 27.
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The Cosmos (ATOM) price has been rising at an accelerated rate since reaching a low on June 27.
The price is currently completing a correction, which should end near 38,000 satoshis. Afterward, ATOM is likely to continue moving upwards.

Breakout From Long-Term Resistance

The ATOM price had been following a descending resistance line since it reached a high of 66,110 satoshis on December 27, 2019. The price broke out from there at the beginning of June 2020 and decreased to validate the line as support afterward on June 27. Since then, ATOM has been rising at an accelerated pace. However, the price was rejected by the 0.5 – 0.618 Fib levels on July 19 and has been decreasing gradually since. As for technical indicators, there is considerable bearish divergence that has developed on the daily RSI. This is a sign that the price is likely to retrace, which is strengthened by the price rejection at the 0.5 – 0.618 Fib area. The price has already retraced considerably since the divergence. The 50 and 200-day moving averages (MA) are very close to making a bullish cross, and will likely provide support to the price if it retraces. The MAs are currently near 37,500 satoshis.
ATOM Movement
Source: TradingView
Cryptocurrency trader @Thecryptodog stated that after a long consolidation period, ATOM has begun to move upwards, and will soon reach new highs. However, the price has retraced since then, likely due to the bearish divergence previously mentioned.
ATOM Movement
Source: Twitter
The 12-hour chart shows a very steep ascending support line that has not yet been broken. The slope of this line probably makes the ATOM price rise unsustainable in the long-run. However, the price should continue rising as long as it is trading above this support line. The next closest resistance area is found at 52,500 satoshis. If the price breaks down, the next closest support levels are found at 38,000 satoshis, the 0.5 Fib level of the entire upward move, or 34,600 satoshis, the 0.618 Fib level, and the 100-day MA.
ATOM Daily
Source: TradingView

The Current ATOM Correction

Since the June 27 low, the ATOM price has possibly begun an impulsive five-wave formation. Currently, it is in the fourth wave, which is corrective. It’s not yet clear if the correction is over, but the price is definitely nearing its end. The most likely next step would be a slight bounce followed by another decline. Due to the fact that wave two’s retracement was quite shallow, wave four’s retracement may be deeper, ending between 36,000 – 39,000 satoshis, the 0.5 – 0.618 Fib levels of the third wave.
ATOM Movement
Source: TradingView
To conclude, the ATOM price is nearing the end of its correction, after which it should resume the current upward trend.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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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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