A descending resistance line rejected the Cosmos (ATOM) price on Jan. 16. It is likely still mired in a corrective structure.

Prism v2 will be a sovereign blockchain created using the Cosmos SDK. It is a Layer-1 blockchain specializing in trading, deploying and harvesting of yield. Prism v1 was launched on the Terra Classic Network, but following the crash of the latter, it was decided that Prism v2 should not be exposed to the limitations of building smart contracts on a foreign blockchain.

In order to allow ATOM holders to support the development of Prism, a weekly snapshot will be taken starting on Jan. 19th. Then, an airdrop will be claimable after the mainnet launches. 

Possibly as a result of this development, the ATOM price has increased by nearly 50% since the beginning of 2023.

Cosmos (ATOM) Price Moves Into Double Digits

Since hitting a high of $17.20 on Sept. 9, the ATOM price has dropped beneath a long-term declining resistance line. More recently, on Nov. 5 (red icon), the line resulted in a rejection, beginning the current downward trend that fell to $8.43 on Dec 16. The Cosmos price has increased since.

On Jan. 9, 2023, ATOM moved above the $10.50 resistance area and accelerated its rate of increase. This led to the highest price of the year at $13.43 on Jan. 14. However, another rejection from the resistance line followed, which is still ongoing.

A breakout from the resistance line would likely lead to an upward movement toward $15.35, the 0.786 Fib retracement resistance level. On the other hand, a rejection could lead to a re-test of the $10.55 support area.

Since the daily RSI is above 50 but decreasing, there are no decisive signs as to which of these will occur.

Therefore, the direction of the future trend is undetermined. A closer look at the movement is required to decide which will occur.

Cosmos (ATOM) Price Resistance
ATOM/USDT Daily Chart. Source: TradingView

Cosmos Short-Term Price Prediction: More Downside Before Rally

A closer look at the technical analysis from the short-term six-hour chart suggests that the Cosmos price has completed a five-wave downward movement, which led to the rejection from the resistance line.

If so, the ATOM coin price is now mired in an A-B-C corrective structure (white). Therefore, the most likely outlook has the price increase toward the resistance line once more, completing the B wave during the next 24 hours. Then a fall to the 0.5 Fib retracement support level at $10.94 to complete the correction is expected. This would also give waves A:C close to a 1:1 ratio.

On the other hand, a breakout from the descending resistance line would mean that new maximum prices toward $15.35 are expected.

Cosmos (ATOM) Price Wave Count
ATOM/USDT Six-Hour Chart. Source: TradingView

To conclude, the most likely Cosmos short-term price prediction is a rally toward the descending resistance line at $12.70 before another drop to $10.94 completes the correction. A breakout from the resistance line would invalidate this ATOM price analysis and suggest that highs near $15.35 are expected.

For BeInCrypto’s latest crypto market analysis, click here.

The post Will Prism Airdrop Lead Cosmos (ATOM) Back Into Top 10? appeared first on BeInCrypto.

This post was originally published on this site

Comments are closed, but trackbacks and pingbacks are open.