Cosmos (ATOM) Needs This Move to Happen to Stay Bullish

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The Cos­mos (ATOM) price began an upward move­ment after gen­er­at­ing bull­ish diver­gence. An increase above $10.6 would go a long way in indi­cat­ing that the trend is still bullish.

The ATOM price has fall­en below a short-term descend­ing resis­tance line since reach­ing a high of $17.2 on Sept. 9. More recent­ly, the line caused a rejec­tion on Nov. 5, accel­er­at­ing the down­ward move­ment. A sim­i­lar decrease was seen through­out the cryp­to market. 

The Cos­mos price reached a low of $8.80 on Nov. 24 before bounc­ing. Cur­rent­ly, it is attempt­ing to reclaim the 0.618 Fib retrace­ment lev­el at $10. Its reclaim would make the Cos­mos price fore­cast bull­ish, since the pre­ced­ing break­down would be con­sid­ered a deviation.

In that case, the next resis­tance areas would be at $12.30 and $14.30, cre­at­ed by the 0.5 Fib retrace­ment resis­tance (white) and the resis­tance line, respectively.

Cosmos Price: Will Bullish Divergence Lead to Rally?

A clos­er look at indi­ca­tors from the 12-hour tech­ni­cal analy­sis sup­ports the con­tin­u­a­tion of the upward move­ment. The main rea­son for this is the bull­ish diver­gence in the dai­ly RSI (green line). Such diver­gences often pre­cede upward movement. 

An RSI increase above 50 would go a long way in sug­gest­ing the upward move­ment has started. 

More­over, the ATOM price has bro­ken out from a descend­ing resis­tance line dur­ing the past 24 hours, fur­ther sup­port­ing the hypoth­e­sis of an upward movement.

Wave Count Support Increase

Final­ly, the wave count is also lean­ing bull­ish. The decrease since Sept. 7 resem­bles an A‑B-C cor­rec­tive pat­tern, in which waves A:C have a 1:1 ratio (white). An increase above the wave A low (red line) of $10.6 would con­firm this count. In this case, an even­tu­al break­out from the long-term resis­tance line would be likely. 

Con­verse­ly, a drop below the wave C low of $8.7 would inval­i­date this par­tic­u­lar count.

For BeInCrypto’s lat­est cryp­to mar­ket analy­sis, click here.

Dis­claimer: BeIn­Cryp­to strives to pro­vide accu­rate and up-to-date news and infor­ma­tion, but it will not be respon­si­ble for any miss­ing facts or inac­cu­rate infor­ma­tion. You com­ply and under­stand that you should use any of this infor­ma­tion at your own risk. Cryp­tocur­ren­cies are high­ly volatile finan­cial assets, so research and make your own finan­cial deci­sions.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

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