Downtrend Dictates But Considerable Support Awaits
This article discusses the Cosmos price action and pinpoints the critical levels to watch out for in the days ahead.
Cosmos (ATOM) is unchanged at $28.14 (-0.96%) in Asian hours on Friday, up around 6% in the last seven days but almost 40% below the all-time high. During the previous two months, ATOM’s market cap has called from $9.8 billion to $6.3 at the current valuation, ranking Cosmos the 35th most-valuable cryptocurrency behind Theta. As a result of the recent weakness, the Cosmos price is at the same level it was in February, despite the combined cryptocurrency market cap increasing by $800 billion in that time. However, ATOM is approaching a significant support level which may offer long-suffering holders a glimmer of hope.
ATOM Price Forecast
The daily chart shows the Cosmos price has retraced almost 50% of the rally from the July lows. Subsequently, the token has broken below the 100-Day Moving Average (DMA) at $32.49 and, on course, to test the 200 DMA at $22.95.
The 200 DMA combined with the 61.8% Fibonacci retracement ($22.70) provides considerable confluent support. Therefore, buyers may emerge if the price continues lower. Furthermore, if Cosmos remains above the 200 DMA, it may climb above the 100 DMA and into the $40.00-$44.00 range.
In contrast, a close below $22.95 would weaken the technical picture, invalidating the cautiously bullish thesis.
Cosmos Price Chart (Daily)
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