On Thursday, after a 13 percent drop in a single day, the price of Cosmos (Atom) continues its losses from the previous session. Following the US Federal Reserve’s huge announcement, the worldwide crypto market went on a massive selling binge.
The riskier assets are kept on their toes by the US Fed’s aggressive tone in its forward guidance. The central bank signaled that interest rates might begin to rise in March. Governor Jerome Powell of the Federal Reserve did not rule out rate hikes at future meetings.
The price has bounced back toward the 20 DMA (Displaced Moving Average) at $37.70 after touching the lows of $27.34 on Friday. The $37.20 horizontal resistance zone is a solid level that has been tried numerous times. The current drop from the indicated level is a reaction to the US Federal Reserve’s pronouncement on Wednesday.
The decrease has persisted, but it is now limited to around $33.00. If the price is able to maintain the level on a daily closing basis, the 20 DMA ( (Displaced Moving Average) will act as immediate resistance. However, if the price tests the $28.00 horizontal resistance support level, the bullish theses will be invalidated. The price of Cosmos (Atom) could drop to $24.0.
Will you bet on Cosmos (Atom) at the current price, or avoid it for some time? Comment below.
