COSMOS seems ready for a sharp correction | 2022

It looks like COSMOS is on the verge of losing a crucial support level that could lead to massive losses. The pessimistic forecast for ATOM is being validated by a technical indicator and a bearish pattern developing on the 12-hour chart.

COSMOS appears set to incur losses over the weekend as multiple bearish signals emerged.

The ATOM token for the interoperable network has enjoyed a significant uptick over the past week. The cryptocurrency in the 20th place by market capitalization has risen more than 60% since February 24. Now, it looks like COSMOS is constrained by a profit taking rally that could lead to a sharp decline.

It appears that the recent bullish price movement has created a rising wedge on the 12 hour chart of ATOM. As Cosmos is approaching the top of the pattern, it may be preparing to break through the support. A decisive close below the lower wedge trend line could trigger a 14.4% retracement towards $28.

The Tom DeMark Sequential Indicator (TD) adds credence to the pessimistic outlook. It is currently offering a green nine candle on the ATOM 12-hour chart, which is a sell signal. An increase in selling pressure could validate the bearish formation, leading to a retracement of the 1-4 hour candles.

It is worth noting that while the odds appear to be in favor of the bears, ATOM may have a chance to invalidate the optimistic thesis.

The Fibonacci retracement indicator, which was measured from ATOM's low of $21.50 on February 24 to the high of $34.70 on March 4, indicates that the decisive 12-hour candlestick close above the recent high at $34.70 could give ATOM the strength to move higher. . In this possibility, the asset could rise towards $38 or even $40.

Cosmos' ATOM token is trading at $32.73 at the time of writing, putting its market capitalization at around $9.5 billion.

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