- Cosmos price had a whipsaw move of 10% intraday to close unchanged on Thursday.
- ATOM sees bulls struggle to reenter a technical long-term flag formation.
- Expect another rejection with bulls getting scared and pushing ATOM below $10.
Cosmos (ATOM) price is playing a dangerous game with the faith of its bulls. A very volatile Thursday saw price action move overall by 20%, first dropping 10% in the ASIA PAC session and next rallying 10% in the US session. As bulls are reluctant to go the extra mile to push ATOM above the green ascending trend line, the threat of a 15% implosion is nearby.
Cosmos price sees bulls dropping the ball here
Cosmos price sees bulls playing with fire as they seem reluctant, stubborn even, to push ATOM above the green ascending trend line that has been present over the longer term already. This becomes an open goal for bears to score as now a fade or a rejection against that trendline would see a firm leg lower. The worst-case scenario would be a dead-cat bounce that would cover a lot of ground in a very short term.
ATOM is thus at risk of tanking at least toward $10.50 and might start flirting with a break below the low of Thursday. In that case there is no stopping this move, and the $10 level will be given up. The monthly S1 near $9.80 would possibly be able to halt any further declines, although a slight overshoot would be expected..
ATOMUSD 4H-chart
Bulls could wait for that last catalyst or headline that might drag them across the line. Expect, for example, to see Bitcoin trading back above $30,000. That could be enough for bulls to want to be part of an overall rally in cryptocurrencies and be enough to push price action back above the green ascending trendline. Although there are quite a few elements that will be acting as a cap on the price action nearby, it would still mean a near 10% gain nearby.
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