The Cosmos technical signs are showing that there’s a growing golden profit opportunity as the blockchain was benefiting from the recent influx in the capital on the market. ATOM surged 27% in the past few days so let’s find out more in the latest cosmos news.
After marking an all-time high of $8.9, ATOM experienced a 58% correction. It now seems that Cosmos will take aim at the $8 price mark with a head and shoulders pattern developing on the charts. While the things were looking positive for the cryptocurrency, the TD index suggests that it could retrace before increasing more. Cosmos looks ready to make gains after the two-month correction but initially, one technical indicator suggested that ATOM prices will drop further and the traders will have a chance of getting back on the market.
Cosmos went through an impressive rally over the past three days as ATOM saw the price increase by about 27%, trading from a low of $4.6 to hit a high of $5.9. Now the different metrics suggest the uptrend is approaching exhaustion. The TD Sequential indicator presents a selling signal on the 4-hour charts as the bearish formation developed a green nine candlestick, predicting a one to four-hour candlesticks correction.
The Cosmos technical signs show there was an increase in selling pressure around the current price levels which could help validate the TD index outlook. Cosmos will be forced to drop to $5.4 or lower before the uptrend continues. If this is to happen, the downswing will represent a chance for patient traders to get back into the market. ATOM seems to have developed a head and shoulders pattern in the same time frame and this technical formation shows that further increases in demand could lead to a full-blown trend reversal to bullish.
A move above the $5.9 resistance level or the neckline, it could signal a sharp upswing which will have to be confirmed by a large spike in buy orders. The bullish pattern projects a 35% upward movement which could take ATOM to $8 and this target is determined by measuring the distance between the head and the neckline but by also adding it to the breakout point. Cosmos seems poised for a short-lived retracement and it could later break out of the head-and-shoulders pattern. The investors should pay close attention to $5.9 resistance levels since it will determine the continuation of the upwards trend.
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