Cosmos (ATOM) – Struggling to overcome the descending trendline
Posted on Wednesday, May 25 2022 at 9:25 pm GMT+0000
Cosmos (ATOM) could not find enough buyers to overcome the descending trendline pulled from April 3rd top, with risks remaining tilted to the downside as the steep negative bias is still holding.
Sellers are currently expected to dictate the medium-term trading, as the momentum indicator has dipped in the negative area, and the RSI is hovering some distance above its oversold level of 30 with weak momentum.
So, if the price proves unable to breach the trendline, and instead slips below the 10.00-round number, all eyes will turn to the most recent multi-month low at 8.14, where any significant penetration will bolster selling interest towards the Fibonacci golden number at 5.46. Another negative extension will reach the 227.2% Fibonacci extension at 2.63.
The aforementioned trendline, which overlaps with the 20-day simple moving average (SMA), is the first important barricade for buyers to overcome while aiming to strike a more remarkable recovery. A decisive close above this ceiling, and more importantly a jump above the 15th of May high at 12.47, will see the price likely speeding up to the August 2021 inside swing low at 17.26. Further higher, the 20.21-21.53 region, linking the December and February bottoms, will be the next target.
In brief, Cosmos has been developing in a descending movement since the beginning of the previous month, and a drop below 10.00 could nourish negative pressures. That said, buyers’ confidence is likely to improve should they manage to steer the price over the 12.47 high.
