Cosmos Technicals Present Golden Profit Opportunity

Cosmos Technicals Present Golden Profit Opportunity

October 12, 2020

Key Takeaways

  • After making an all-time high of $8.9 on Aug. 25 ATOM experienced a 58% correction.
  • Now it seems like Cosmos could take aim at the $8 mark as a head-and-shoulders pattern developed on its 4-hour chart.
  • While things are looking positive for this cryptocurrency, the TD index suggests that it may retrace before advancing further.

Share this article

Cosmos looks ready to make gains after a two-month correction. But first, one technical indicator suggests that ATOM prices will drop further, giving traders a chance to get back into the market.

On the Brink of a Short-Term Correction

Cosmos has gone through an impressive rally over the past three days. ATOM saw its price rise by nearly 27%, trading from a low of $4.6 on Oct. 8 to hit a high of $5.9. Now different metrics suggest the uptrend is approaching exhaustion.

The TD sequential indicator is currently presenting a sell signal on the 4-hour chart. The bearish formation developed as a green nine candlestick, forecasting a one to four 4-hour candlesticks correction.


A spike in selling pressure around the current price levels may help validate the TD index’s outlook. Cosmos could be forced to drop to $5.4 or lower before the uptrend continues. If this were to happen, the downswing would represent an opportunity for patient traders to get back into the market.

Cosmos Presents Golden Profit Opportunity

Indeed, ATOM appears to have developed a head-and-shoulders pattern within the same time frame. This technical formation estimates that a further increase in demand could lead to a full-blown trend reversal from bearish to bullish.

A move above the $5.9 resistance level, also known as the neckline, might signal a sharp upswing that will need to be confirmed by a large spike in buy orders.

The bullish pattern projects a 35.4% upward movement that may take ATOM to $8. This target is determined by measuring the distance between the head and the neckline and adding it to the breakout point.

Although Cosmos seems poised for a short-lived retracement, it could later break out of the head-and-shoulders pattern previously mentioned. Investors should pay close attention to the $5.9 resistance level since it will determine whether the upwards trend will resume.

On the flip side, it is worth mentioning that a move below the $4.6 support level will invalidate the bullish scenario.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article