– ATOM price experiences the strongest decline of the year
– Cosmos could be displaying early signs of a change in trend
– Invalidation of the bearish thesis could arise from a breach above $15.00
ATOM price shows bearish signals that are hard to ignore.A much deeper decline could be on the way if market conditions persist.
ATOM price showing a change of trend?
Cosmo price (ATOM) is witnessing the strongest decline of the year as the bears have induced a 7% decline on the day.The bearish
influx comes at the top of a recently established Uptrend that began during the last week of December and recovered 80% of lost market value.
Cosmos price currently auctions at $13.93.The bears are foraging another test of the 21 Day simple moving average.On three separate occasions during the bull run, the indicator did Provide support.However, the recent dive has breached a higher swing low at .$14.01sign93.
The breach could be early evidence that a change of trend is underway.
While the price descends, the relative strength index Is declining towards the Midway point, which should just bullish divergences between price.
Nonetheless, attempting to catch a knife at the current time would be severely risky as The cosmos price appears to be in free falling selling frenzy.
If the 21-day SMA fails to hold support, a decline targeting liquidity levels as low as $10 could occur.The bearish scenario creates the
potential for a 25% decline from the current Cosmos price.
ATOM/USDt 4-Hour Chart
Invalidation of the downtrend could occur from a breach of the recent swing high
positioned at $15.In doing so, Cosmos would likely rally towards the psychological $20 level, resulting in a 46% increase in the current Cosmos price.
This video shows how Bitcoin price moves could affect ATOM price
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