beincrypto.com
The Cosmos (ATOM) price shows signs of a completed correction which could lead to a sustained upward movement.
The weekly chart for ATOM shows that the price is trading in a long-term range between $8.90 and $15.60. The range has been in place since ATOM moved above $8.90 at the beginning of July 2022. Since then, the range’s top and bottom have been validated sufficient times.
Currently, the ATOM price trades very close to the $15.60 resistance area after it was rejected by it (red icon).
Despite the rejection, the weekly RSI is bullish. It has broken out from a descending resistance line and is above 50. Both of these are considered bullish signs.
If a breakout occurs, the ATOM coin price could increase to the next resistance at an average price of $22. However, if it fails to do so, the ATOM price could fall to the $8.60 support area.
Cosmos (ATOM) Price Prediction for March: Reversal is Right Around Corner
The technical analysis from the short-term six-hour chart shows that the ATOM token broke down from an ascending support line. Afterward, it initiated a relief rally before falling again.
When combining this with the wave count, it is possible that the price completed a five-wave upward movement (black), which was confirmed by the breakdown from the support line. If so, the price is currently in wave C of an A-B-C correction.
The most likely level for the wave to end would be between $11.95 – $12. This confluence of supports is created by the 0.5 Fib retracement support level and by giving waves A:C a 1:1 ratio. So, the correction may be complete. In this case, the Cosmos price would be expected to increase above $15.45 and go toward $22.
Since corrections usually end at or above the 0.618 Fib retracement support level, a close below $11.12 would put the bullish count at risk. Additionally, a fall below the $8.43 minimum price would definitely invalidate the long-term bullish Cosmos price forecast and could send the ATOM price toward $5.
To conclude, the most likely Cosmos price prediction for March is an increase toward the yearly high of $15.45 and a potential breakout toward $20. On the other hand, a close below $11.12 could put this count at risk. Then, it could potentially cause a drop to $8.43.