Cosmos (ATOM) has confirmed a bearish breakdown from a descending triangle pattern, with the price falling below key support levels. The asset is currently testing the $3.02 support zone after breaking down from around $3.57, according to technical analysis. This breakdown validates a bearish continuation setup, indicating increased selling pressure and potential for extended declines.
The next major support lies at $1.60, with Fibonacci extensions pointing to intermediate targets at $2.66 and $2.29. Analyst Ali_charts reported that the descending triangle had been forming for months, characterized by lower highs compressing against a flat base, and the decisive move below $3.57 confirms seller dominance. The RSI is at 34, reflecting bearish momentum, and the MACD remains negative with no bullish crossover, signaling weak buying pressure.
Resistance is firm at $3.17, and a retest of the $3.40-$3.60 zone is possible, but unless reclaimed with strong volume, it may serve as a selling area. ATOM is trading at $3.10, with a 7-day decline of 2.2%, though it has gained 1.4% against Bitcoin in the same period. The broader market outlook remains cautious, with ATOM's price action reflecting consolidation among altcoins and potential for further downside if support levels fail.
