Cosmos (ATOM) Price ACtion Outlook

Aug 16

This bearish downward trend began in March 2024, after its price reached a swing high of $14.505, from an ascending wedge developed in the last quarter of 2023 and the first quarter of 2024.

Since that peak, the asset has been in a continuous decline, which most likely appears as a breakdown of a bearish pattern, precisely the ascending wedge pattern. ATOM has experienced a sustained downtrend. Which again looked like the development of a falling wedge pattern on the daily chart, which appears to be a bullish pattern under construction.

Since the bearishness appears high and derivatives liquidation of longs were high too. There is a higher chance that the dip could increase towards making strong support from the wedge's lower border. In the case of further dip, the supports of $4 and $3.5 could play significant roles. Once breached downtrend could extend.

However, on the flip side, if it dips and takes humongous support followed by major bulls' interest from the wedge's lower border. The price propulsion could attain a breakout by completing the falling wedge pattern. Therefore, in case of a rise, the interruptions that could pose a threat to its scent would be present at $6, and $8, respectively.

Corresponding to the daily chart price of ATOM, the indicators depict a bearish trend, too. However, a minor change has been observed that resembles some buying input in the asset. As RSI surged above 14-SMA, bears still reigned supreme as MACD showed bears cross.