ATOM price could be set for a 36% relief rally
- ATOM price presents a buying opportunity as it bounces off a stable support level at $23.72.
- A quick run-up could allow investors to capitalize on the 36% upswing to $32.49.
- A daily candlestick close below $20.20 will invalidate the bullish thesis for Cosmos.
ATOM price has arrived at a stable foothold that has previously caused bulls to come out of the woodwork and trigger a massive uptrend. Therefore, the recent revisit to this barrier indicates the possibility of a quick run-up.
ATOM price kick-starts a rally
ATOM price catalyzed an upswing on December 15, 2021, that lasted for less than a month, causing the altcoin to shoot up from $20.20 to $44.78. This 121% upswing became the range for the upcoming price action.
Since then, ATOM price has remained subdued within the range and specifically below the 50% retracement level at $32.49. The last three times Cosmos bulls tried taking over the said barrier they failed.
The latest rejection was on April 3, leading to a 30% crash that tagged the $23.72 support level. Since the market-wide downswing pushed ATOM price lower, it has managed to bounce off the said barrier.
Going forward, investors can expect ATOM price to kick-start an upswing that pushes forward and retests the 50% hurdle at $32.49. This run-up would constitute a 36% upswing and is likely where the upside will be capped for Cosmos.
ATOM/USDT 1-day chart
While things are looking up for ATOM price, a daily candlestick close below $20.20 will invalidate the bullish thesis for Cosmos by producing a lower low. In this situation, ATOM price might slide down in search of a stable support level at $17.90.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
