Cosmos (ATOM) – Expected to give up more ground in the forthcoming sessionsPosted on Tuesday, March 8 2022 at 8:59 pm GMT+0000
Cosmos (ATOM) has taken some heavy damage in the last two and a half months and dropped to a fresh 3-month low at 21.53 on February 24 before bouncing higher.
However, it seems like the moderate recovery posted over the past couple of weeks couldn’t overpower the prevailing bearish structure, and negative pressures are making a comeback. That view is endorsed by multiple technical indicators as the 50-day simple moving average crossed below the 200-day simple moving average, and the oscillators are clearly skewed to the downside. The RSI is decreasing below the neutral 50 and its moving average, the Stochastics are exhibiting a clear negative charge and the momentum indicator is strengthening its downtrend in the bearish region.
The bears are currently eying the mid-line of Andrew’s pitchfork stretched from the January 4th peak to the February 24th bottom. Slicing this line will likely intensify selling pressures, opening the door towards the aforementioned bottom at 21.53.
On the flip side, for buyers to return to the game, they will need first to clear the 50- and 200-day simple moving averages seen at 29.80 and 31.10 respectively. However, they will not seize full control unless they manage to overstep the March 4th peak at 34.71.
In brief, Cosmos is expected to give up more ground in the forthcoming sessions, especially if it slides below the mid-line of Andrew’s pitchfork.