Cosmos (ATOMUSD): Awaiting a Deep Dive


For Atom, we've had to adjust our limit order and counting as we observed an additional rise that did not fit into our initial analysis. This necessitates shifting our positioning of Wave (3) upwards. We are still within the ideal range of the 361.8% extension. Following this, we witnessed Wave (4) and an impulsive Wave (5) upwards, succeeded by a minor downward consolidation. In the coming days, we definitely expect to form a Wave (B) and then a Wave (C), although their precise locations are currently unclear. We lean towards expecting a Flat structure, typically between 100% and 138%; anything beyond would be excessive.
Assuming that Wave (A) has reached its bottom at the current level, and if we break out significantly above $15.17, we will need to reassess the entire scenario. Until then, we anticipate seeing a three-part downward correction before reaching Wave (C) and thus completing Wave (ii). This Wave (ii) should find its absolute support at the 78.6% level and its associated support zone. Depending on the position of Wave (ii), we then expect a minimum rise for the subordinate Wave (iii) to at least $21. However, in the days or weeks to come, we should still anticipate another significant downward movement after having developed the Wave (B) upwards.
We got filled on Cosmos yesterday but it is too early to be completely sure we are not going to see another leg down for Atom, still we are holding and waiting patiently for things to develop. We will update you accordingly.
For Atom, Cosmos, we anticipate that we might have already concluded Wave (ii) at the level of $10.63, which coincides quite precisely with the level of the previous subordinate Wave 4, aligning with the expected zone for a Wave 2. Nevertheless, we chose to enter this trade earlier because we wanted to be involved and believe in the potential for a significantly strong uptrend. We also continue to believe that the support zone at the lowest Fibonacci retracement level remains extremely important for us, and we do not expect to drop below $10.63 again. We should now see a five-wave structure leading up to at least $20, which is our new minimum target for the Wave (iii). Of course, it can extend further, but $20 is the minimum we should anticipate. The maximum we are keeping an eye on is $31.25, although reaching this level would be quite significant and is not entirely out of the question. For now, we need to wait and ensure we don't drop below $10.63 again, as that could potentially lead us to the last Fibonacci retracement level.

Since our last check-in with Cosmos, there’s been a minor uptick. Yet, we're eyeing a notable jump for Wave (iii), aiming for highs around $20 – that's a potential 63% gain ahead. But, it appears we're winding down a detailed Wave 4, casting doubt on an immediate, significant rise for Wave (iii). Our sights are set on reaching the $13.80 resistance, a tough barrier awaiting our breach. For Atom to surpass this, a robust push is essential, and it's still up in the air whether we'll muster that strength. Navigating above this hurdle is crucial; meanwhile, dropping below $12 signals trouble. Keeping above this mark keeps our prospects bright for an ascent to that resistance. Next, we might see a dip towards a finer Wave (2) – that's where we'll plot our next move.

Our stop loss shifts to $10.43 to safeguard our position.

Unfortunately, we were stopped out of our ATOM trade after today's inflation figures were released. CPI and FOMC events always bring volatility, and we were already close to our stop-loss limit. We will wait and see how things develop and inform you about new entry opportunities.

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