Cosmos [ATOM] saw a large move upward initiated in June. Yet, even these gains came after the asset lost 80% of its value from April to early June. Therefore, long-term investors must temper their bullish expectations.

In June and July, Cosmos initiated a higher timeframe market structure break toward the bullish side. The move upward from $5.5 to $17.19 in mid-2022 represented gains of 210%. When the $10-$10.8 area was flipped to support, it signaled strong bullish intent.

In recent months, the trend has been bearish, and the move beneath $11.37 in early November saw bears seize control of the market. The  61.8% and 78.6% Fibonacci retracement levels at $10 and $8.04 are important levels of support. One of them has already been decisively broken, and longer-term investors will have an eye on $8.

The Relative Strength Index (RSI) remained below neutral 50 since November to show bearish momentum. The Chaikin Money Flow (CMF) also dropped below -0.05 in December to show heavy selling pressure. The 21 and 55-period moving averages formed a bearish crossover in mid-November to reinforce the idea of seller dominance.

(By Akashnath S)