2022 will go down as the year of deleveraging and no other asset class has de-levered more than cryptocurrencies. 2022 is threatening the very existence of many cryptocurrencies. As we go through various charts ATOMUSDT (Cosmos) has caught our attention and below we will present a Bullish wave count and an alternative Bearish count.
Our operative wave count currently, is that Primary Wave 2 has ended at $5.55 in June 2022. If price trades below $5.55 then the bullish count is invalidated and alternate C is likely underway, which, will likely see Cosmos trade towards the $3/$2 range and in essence threaten the existence of this coin.
The vast majority of cryptos are trading below their June lows including Bitcoin but Cosmos still remains above its June low. That’s relative strength! , so if cryptos turn around, we believe that Cosmos will be one of the outperformers. The second daily chart shows the medium term wave count, were we believe an ending diagonal Wave C has completed at $8.437. Trade below this level is a strong indication that the alternate Wave C bearish count may be unfolding as presented in the monthly chart and a test of the $5.55 June low likely.
For the bullish wave count to start gaining traction, price will need to break above $10.64 confidently. If that occurs then we believe that minimum price objectives for Cosmos will be the Sept/Oct highs at $15.81 and $17.198.
Looking at the 4hr chart, Cosmos may be carving out an Adam & Eve double bottom pattern. $8.437 is a CRITICAL pivot and bullish scenario invalidation pivot if price trades below! From a risk/reward perspective we find long positions quite attractive at these levels but only for a partial scale in. Keep this one on your radars!
Please DYOR and stay safe! Happy trading!
Chart 1: ATOMUSDT Monthly
Chart 2: ATOMUSDT Daily
Chart 3: ATOMUSDT 4hr