Cosmos Price Prediction: ATOM breaks out, prepares for 30% bull rally
- Cosmos price has breached the $6.28 to $7.58 range to the upside.
- Investors can expect a retest of the $7.58 as support to kickstart an explosive rally to $10.81.
- Investors need to note that a daily candlestick close below $6.93 will invalidate the bullish thesis.
Cosmos (ATOM) price has put an end to its ongoing consolidation after breaking out of the range’s upper limit. This move signals a spike in bullish momentum and a potential start to an uptrend.
Cosmos price ready to take on resistance levels
Cosmos (ATOM) price created a range, extending from $6.28 to $7.58 in early to mid September. This range was breached to the upside on October 30 as ATOM produced a 10% daily candlestick. The bullish breakout is a sign of increasing buying pressure and interest in cryptocurrencies.
Going forward, sidelined buyers can get an opportunity to accumulate ATOM as Cosmos price retests the $7.58 barrier as a support level. This pullback will also allow the Relative Strength Index (RSI) to reset, making way for more buyers to step up. A successful bounce from $7.58 could kickstart a rally to the next critical hurdle at $10.81. But a move to this resistance level requires a flip of the intermediate hurdle of $8.42.
In total, this move from Cosmos price would constitute a near-30% gain from $8.42 but 42% when measured from $7.58.
ATOM/USDT 1-day chart
On the other hand, investors need to note that a daily candlestick close below $6.93 will create a lower low. This move will invalidate the bullish thesis and could trigger a 9.43% drop to $6.28.
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.
