Cosmos (ATOM) Breaks Down from Key Support, Targets $1.60 as Bearish Momentum Builds

Cosmos (ATOM) confirmed a descending triangle breakdown below $3.57, signaling sustained bearish momentum and strong selling activity across the market.

Technical indicators show persistent downward pressure, with Fibonacci targets projecting possible declines toward $2.66, $2.29, and a key support near $1.60.

Analysts note $3.40–$3.60 as a crucial retest zone that may determine whether Cosmos can reverse or continue its bearish trajector

Cosmos (ATOM) has officially entered a bearish continuation phase after losing critical support near $3.57. The breakdown from a descending triangle pattern signals growing selling pressure, setting the stage for a potential move toward $1.60 in the coming weeks.

Descending Triangle Breakdown Confirms Bearish Continuation

Crypto analyst Ali _charts reported that Cosmos ($ATOM) has broken down from a large descending triangle, confirming a bearish continuation setup. The structure had been forming for months, with lower highs compressing against a flat base at $3.57. The decisive move below this zone now validates sellers’ dominance in the market.

Following the breakdown, ATOM is consolidating around $3.20, trading beneath the former support, which has now turned into resistance. Analysts suggest that a short-term recovery toward $3.40–$3.60 may occur as the market retests this broken base. However, unless the price reclaims that level with strong volume, it is expected to serve as a selling region before the next decline.

Technical projections using Fibonacci extensions point toward multiple downside checkpoints. These include $2.66 at the 1.272 Fib level, $2.29 at 1.414, and $1.83 at 1.618, with the final bearish target positioned between $1.53 and $1.60, where long-term buyers may begin to emerge.

Momentum Indicators Show Bearish Control Persists

Cosmos continues to trade within a sustained downtrend, maintaining a series of lower highs and lower lows after losing the $3.60 support. Price movement remains subdued, suggesting consolidation before another possible decline.

The Relative Strength Index (RSI) currently stands near 34, signaling that bearish pressure remains dominant. Although the indicator approaches oversold levels, any rebound would likely be limited to short-term corrective rallies within the existing downtrend.

Meanwhile, the MACD histogram remains in negative territory, and the signal lines continue below the zero axis. The absence of a bullish crossover confirms that buying momentum remains weak and that the market has yet to signal a reversal.

Key Levels to Watch as Sellers Maintain Pressure

The next critical level for bulls lies between $3.40 and $3.60. Regaining this zone would be necessary to challenge the broader bearish outlook. Without such a recovery, $ATOM remains vulnerable to further downside movement toward lower support zones.

If sellers maintain control, traders anticipate the price could extend losses toward $2.80–$2.50 in the near term. These areas align with Fibonacci projections and historical demand zones that may temporarily slow the decline.

For the bearish scenario to be invalidated, Cosmos would need a decisive daily close above $3.80–$4.00. Until then, technical momentum and market structure suggest that $1.60 remains the primary target, reflecting a cautious sentiment across the Cosmos market.

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