- Cosmos price pops higher and gets barred on topside by a bearish triangle.
- ATOM to see more selling pressure as important moving average breaks below its longer-term counterpart.
- The worst-case scenario indicates a 30% price devaluation for ATOM if bears gain full control.
Cosmos (ATOM) price is at a point where bulls will need to start facing the music. With a third topside rejection, lower than the day before, a bearish triangle is being drawn on the charts. Bulls will start to vacate the premises as bears start to build up in volume and size and will soon take over control of the price action. Both the short term and medium term point to more selling pressure and even put forward a small crypto winter scenario for Cosmos that could have it drop below $8.
Cosmos price to face winter during summertime
Cosmos price is bound to produce a substantial leg lower in both the short term and the near term. For this week, the bearish triangle on the chart points to a break at the monthly S1 support as bears flirt with taking price action below $10. That alone would mean a 10% loss for this week.
In the longer term, ATOM has the 55-day Simple Moving Average (SMA) breaking firmly below the 200-day SMA. Once that 200-day SMA starts to move lower as well, a Death Cross is being formed again. That pattern foreshadows another rough patch that would partially replicate the crypto winter from 2022. In terms of valuation, this would devalue Cosmos by 30% and push price action near $8.
ATOM/USD 4H-chart
The bearish triangle could be a boobytrap though that tricks bears into falling into a bear trap. A brief break below $10 would see massive buying with the buy orders exploding. ATOM would see its price action ramp up quite quickly and head toward $11.50 to either break or halt near the monthly pivot – a packed area where both the 55-day and 200-day SMA reside.
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