Bitcoin
BTC$61 042.69

0.62%

Ethereum
ETH$4 117.18

3.66%

Binance Coin
BNB$483.09

1.03%

Cardano
ADA$2.16

0.08%

Tether
USDT$1.000381

0.04%

Solana
SOL$196.57

-0.49%

Cosmos: Healthy Recovery or Dead Cat Bounce?


It is indeed unfortunate that the whole situation with coronavirus and the overarching crash of the real-world market has clearly shown that cryptocurrencies are far from being the safe-haven assets that traders, investors, and common folks alike could revert to in the time of economic instability. Instead, the unprecedented dump of Bitcoin, and Cosmos along with it, showed that the overwhelming majority of people still perceive crypto as a highly risky instrument that has to be abandoned for cash or other assets in the times of great turmoil. No wonder that Cosmos, as well as the rest of the market, from top to bottom, lost all those gains from the first month and a half of the year.

Cosmos, for instance, dipped far below its January positions, having decreased in value by as many as 80% from this year’s highs at $5.3. It’s certainly not the death of ATOM, and the cryptocurrency market in general, but this situation distinctively shows how susceptible crypto has become to global hysteria that is raging nowadays. Nevertheless, disciplined traders have to accept this situation, make the corresponding conclusion, and elaborate the appropriate tactics for these market conditions.

What to expect from Cosmos after a massive dump


The most obvious conclusion that can be made from the ongoing occurrences on the cryptocurrency markets is that the bears are reigning supreme right now, so traders should literally scratch out the words “long position” from their vocabularies for the time being. The coming weeks, or even months, will be all about selling, shorting, and price falls. With that being noted, let’s take a closer look at the price action of ATOM and analyze it with the utmost precision.

The day traders who read this article will be most interested in the situation that unfolds in the 15-minute time frame. Here we can see the ongoing consolidation which the market needed badly after the initial shock therapy that it received on March 12.

15-minute ATOM/USDT chart

But even after Cosmos has taken a breather, the price persisted in sliding downward, only at a much slower rate. However, given the news about the US government injecting yet another huge dose of liquidity into the traditional markets in an effort to halt the tsunami of panic sales, we can expect the cryptocurrency market, including ATOM, to react in a positive manner by performing at least a partial recovery, which should take the full effect after the price breaks through the sideways trading channel to the upside, subsequently reaching the 0.5 Fibonacci level or $2, with the top price target being $2.3.

Moving on to the hourly chart, it shows that Cosmos has clearly entered a very tight ascending wedge, where it should stay for a while, given that the next wave of bearish pressure doesn’t occur soon.

1-hour ATOM/USDT chart

The price is now kissing the upper channel line being supported by the substantial trading volume, but the fact that the RSI is already on the brink of reaching the overbought area signifies the approaching retracement, presumably to $1.46. 

1-day ATOM/USDT chart

The daily chart reveals that ATOM is making an attempt to bounce back after the price dump, which was pretty horrific for this coin as it lost 65% to 68% on the day, stopped by pennies from reaching $1. However, traders shouldn’t get overly optimistic about this recovery as it could constitute the fragment of the dead cat bounce, after which we could be ATOM trading below $1.

Author: Alex Paulson for Crypto-Rating.com

Related

Cosmos (ATOM) Could be Preparing For a Bounce to $7
Cosmos (ATOM) Could be Preparing For a Bounce to $7
Cosmos (ATOM): Relentless In Its Strive to the Upside
Cosmos (ATOM): Relentless In Its Strive to the Upside
Cosmos (ATOM) Is Bursting Out of the Range
Cosmos (ATOM) Is Bursting Out of the Range
Cosmos (ATOM) Could Ride High on Fundamentals
Cosmos (ATOM) Could Ride High on Fundamentals
Cosmos (ATOM) Price Prediction
Cosmos (ATOM) Price Prediction

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 64% 72 $61 042.69 0.62% 0.36% $1 150 794 336 311 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 71.6% 55 $4 117.18 3.66% 7.58% $486 030 676 596 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 73.2% 57 $483.09 1.03% 3.50% $80 579 954 221 BNB 7 days price change
4 Cardano (ADA) ADA Cardano predictions 91.2% 14 $2.16 0.08% -1.18% $71 002 197 011 ADA 7 days price change
5 Tether (USDT) USDT Tether predictions 95.2% 1 $1.000381 0.04% 0.03% $69 600 606 049 USDT 7 days price change
6 Solana (SOL) SOL Solana predictions 70.4% 52 $196.57 -0.49% 24.39% $59 131 401 979 SOL 7 days price change
7 XRP (XRP) XRP XRP predictions 76% 49 $1.088980 0% -4.47% $51 123 615 596 XRP 7 days price change
8 Polkadot (DOT) DOT Polkadot predictions 60.4% 77 $43.78 0.35% 4.61% $43 239 027 943 DOT 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 72% 56 $0.248946 1.22% 4.69% $32 814 608 422 DOGE 7 days price change
10 USD Coin (USDC) USDC USD Coin predictions 92.4% 1 $1.000560 0.03% 0.06% $32 561 971 437 USDC 7 days price change
11 Terra (LUNA) LUNA Terra predictions 70.4% 62 $42.85 -2.61% 17.12% $17 200 813 172 LUNA 7 days price change
12 UniSwap (UNI) UNI UniSwap predictions 77.2% 42 $26.67 4.27% -0.87% $16 312 283 765 UNI 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 68% 61 $65.25 0.30% 13.12% $14 373 086 792 AVAX 7 days price change
14 Chainlink (LINK) LINK Chainlink predictions 77.6% 48 $30.88 7.84% 13.15% $14 233 972 483 LINK 7 days price change
15 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 64.8% 71 $61 137.09 0.71% 0.47% $13 559 759 340 WBTC 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.