Cosmos has started the new trading week in a positive fashion, after suffering its largest-ever monthly decline since its inception. The ATOM / USD pair is currently gaining over five percent intraday, after falling below the 2.00 level for the first time over the weekend.
The cryptocurrency suffered its second month of double-digit declines in August, wiping of over forty percent of its value. At current trading levels Cosmos is down some seventy percent from its all-time price high, and is at its most oversold on record, according to the daily RSI indicator.
From a technical perspective, the short-term and medium-term outlook certainly for Cosmos appears bleak, although the one-hour and daily time frame suggest a strong recovery could soon take place. The one-hour time frame is showing the emergence of a bullish reversal pattern, while both the lower and higher time frames show significant amounts of positive MACD price divergence.
The bullish reversal pattern on the one-hour time frame suggests a recovery back toward the 2.70 level, at a minimum, with the possibility of a recovery towards the 3.00 level. The daily time frame is even more positive and suggests a medium to longer-term recovery back towards the 5.88 level.
According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Cosmos is quite bearish, at 38.00 %, while the overall long-term sentiment towards the cryptocurrency is totally neutral, at 50.00%.
ATOM / USD H1 Chart by TradingViewUpside Potential
The one-hour time frame is showing that a bullish inverted head and shoulders pattern is starting to take shape, with the 2.22 level the neckline of the pattern and breakout area. The overall size of the pattern suggests a recovery towards the 2.70 ...