- Cosmos price could be setting up for a decline towards $10.64, but a confirmation signal is needed.
- The Relative Strength Index signals the current price could be at its final level of bullish support.
- A breach above the weekly high at $13.09 could produce another upswing towards $15 in the short term.
Cosmos price is in the make-or-break situation. Traders should prepare themselves for an uptick in volatility while utilizing the key levels mentioned below.
Cosmos price nears a move
Cosmos price displays bearish signals that are unavoidably concerning. On March 2, the scalable blockchain token is on its second week of consecutive downtrend pressure as the ATOM price hovers above a descending trend line. The 3% downswing of the week has also accomplished a change of market structure as this week's low at $12.11 is beneath the previous swing low at $12.66 that occurred on February 14.
Cosmos price currently auctions at $12.44. The Relative Strength Index (RSI), an indicator used to gauge the kinetic potential of a trend, shows the ATOM price in a make-or-break situation as the indicator hovers exactly at the 40 level. Based on classical technical analysis, anything deeper than current levels would suggest the bulls have given in, and the ATOM price could produce a much steeper decline.
This thesis proposes that traders wait for the first downswing move and then enter upon a pullback. The ideal scenario would be a breach of the descending trendline followed by a retracement outside of the boundary to enter a bearish position. If this scenario pans out, the COSMOS price could set up for a decline targeting the 61.8% retracement level of the winter rally near $10.64. The bearish scenario creates potential for a 15% decrease from Cosmos' current market value.
ATOM/USDT 1-Week Chart
On the contrary, it is imperative for traders to wait for the confirmation signal as the descending trend line could provide support for the ATOM price and prompt an upswing. The earliest evidence to invalidate the downtrend potential would be a breach above this week' high at $13.09.
If the bulls are successful, the Cosmos price could continue the winter rally and target the February high at $15.50, resulting in a 25% increase from Cosmos' current market value.
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