Lorenzo Stroe
Independent Analyst
- Cosmos price had a significant 200% rally to $26.55 on February 16.
- The digital asset is potentially bound for a short-term correction after such a run.
- A key indicator has presented a sell signal on the 4-hour chart.
Since the beginning of February, Cosmos price has increased by more than 200% reaching a potential local top of $26.55. The digital asset seems poised for a pullback considering the magnitude of the previous rally.
Cosmos price can dive towards $21.7 in the short-term
On the 4-hour chart, the TD Sequential indicator has just presented a sell signal at the top which indicates that Cosmos price could be poised for a correction. Using the Fibonacci Retracement tool, we can calculate several price targets for the bears.
ATOM/USD 4-hour chart
The nearest price target is $21.78 which is the 78.6% fib level followed by $18 at the 61.8% point. Losing both levels would drive Cosmos price down to $15.39 at the 50% Fibonacci retracement level.
ATOM/USD 4-hour chart
To invalidate the bearish outlook and sell signal, ATOM bulls must push Cosmos price above the high at $26.2 with a 4-hour candlestick close. A breakout above $26.55 would drive Cosmos up to $32.64, at the 127.2% Fibonacci level.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.