Cosmos Price Prediction: ATOM breakout could catalyze 50% rally
- Cosmos price currently retests $10.08, a recently flipped hurdle into a support floor.
- A successful bounce here could kickstart a 50% rally to the next key weekly resistance level at $15.12.
- A weekly candlestick close below the $8.85 support level will invalidate the bullish thesis for ATOM.
Cosmos (ATOM) price has managed to overcome a key weekly hurdle, which suggests a shift in market structure on the higher time frame. Going forward, investors can expect ATOM to start scaling higher and revisit subsequent barriers
Also read: Cosmos Hub founder plans fork, ATOM holders may receive token airdrop
Cosmos price edges closer to an explosive rally
Cosmos price first encountered the $10.08 weekly resistance level in November and faced three rejections. The fourth weekly candlestick, however, managed to produce a decisive candlestick close above it. Despite the initial weakness, ATOM has managed to rally higher and is in a p position to close above this hurdle on the weekly time frame.
If Cosmos price bounces off this level, it could kickstart an uptrend. The Relative Strength Index (RSI) and the Awesome Oscillator (AO) indicators are both above the respective mean levels on the weekly timeframe. The AO indicator has breached the zero level for the first time in nearly 300 days. Hence, this bullish development is likely going to catalyze an explosive move to the upside, especially with the recent flip of a key resistance level.
Retest of the $10.08 level will be a clear buy signal before Cosmos price triggers a 50% move to the next key weekly hurdle at $15.12. In a highly bullish case, Cosmos price could even extend the gains to retest the $21.68 hurdle. This move would bring the tidal gain from 50% to 116%.
ATOM/USDT 1-week chart
While the outlook for Cosmos price is clearly leaning bullish, it is not confirmed yet. Considering Bitcoin’s bullish market structure on the daily timeframe has been broken, a sell-off could be waiting to happen. In such a case, a weekly candlestick close that flips the $8.85 support level into a resistance level will invalidate the bullish thesis for ATOM holders. This development could see Cosmos price visit levels around $7.50.
Also read: Cosmos Price Prediction: ATOM eyes 10% gains amid chatter about a fork
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.
