The ATOM price has been trading inside a descending channel since December 15, 2019. Although the price has bounced up on its support line on March 1, it still has no clear signs of Reversal and breakout may occur.
Cosmos price highlights (ATOM)
- Price is trading in a descending channel.
- It is facing resistance from the 200-day moving average (MA).
- Resistance at 4,400 satoshi.
ATOM is trading in a short-term descending wedge
LSDinmycoffee famous trader Trader margin tweeted an ATOM price chart, wondering if the previous break was just a deviation and the price was still trading in the same wedge. Since wedges are considered a bullish reversal pattern, there will be a breakout in that case.
What if it was a deviation and the falling wedge is still valid.
Be careful though, it lost dma200 and transformed turning into a resistance.
I'm not buying here. pic.twitter.com/zJljbPfOOL
– Crypto Krillin ॐ (@LSDinmycoffee) March 6, 2020
Price fluctuations since December 15, 2019 look more like a descending channel than a descending wedge, as stated in the tweet. Both resistance and support areas have been confirmed many times and the lines are parallel, making this the most reliable pattern.
Though prices have bounced on the support line, technical indicators provide a bearish picture. The price is trading below the 200-day MA, which has confirmed it is resistance. In addition, the daily RSI is below the MA50, showing that the price is in a downtrend.
Motion in the future
Short-term movement provides a bullish outlook. The price broke from a descending resistance line and confirmed it was support after that.
The nearest resistance level is found at 4,400 satoshi, in which the price created a double peak before falling and confirming the resistance line.
The hourly chart shows that the price is expected to make another attempt to move above this resistance, considering it is also trading in a short-term descending wedge, considered an island pattern. dimensional increase.
Therefore, the confluence of these bullish signals is a sign of a future breakout. Although a breakout could eventually lead the price to the resistance line of the descending channel, at the moment we cannot confidently predict whether the price will break out of the channel.
To conclude, ATOM prices are trading in a long-term descending channel and a short-term descending wedge. We expect it to break out of the wedge and reach the resistance zone mentioned above and possibly the channel resistance line.
You can see the price for ATOM here.
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