Cosmos Price Prediction: ATOM could rally 25% despite disbelief
- Cosmos price is currently consolidating after a 3% bounce the previous day.
- ATOM price is aiming for $16.90.
- Invalidation of the bullish thesis would arrive from a breach below $12.66.
Cosmos price shows a bullish narrative for a potential swing trade in the coming weeks. Traders should keep the digital asset on their watch list and anticipate a surge.
Cosmos price shows bullish potential
Cosmos price is currently consolidating at $13.60 after a 3% bounce from the $13.19 lows on Wednesday. The recent swing low achieved on February 21 is higher than the previous swing low, suggesting a support zone for a potential rally. Traders should remember that the consolidation occurs after the Relative Strength Index (RSI) breached overbought conditions in January. The overthrow of the RSI indicates a genuine bull run in the making.
The Volume indicator, however, confounds the bullish premise as consolidations have shown considerably fewer transactions compared to the extreme uptick in volume witnessed during the winter rally. This tapered pattern has been witnessed in previous crypto rallies, which continued the trend soon after.
The RSI and the tapering pattern on the Volume indicator for Cosmos' ATOM price depict a ramping 21-day simple moving average (SMA) pattern, which could trigger an explosive upswing for the next targeting $16.90. This target suggests a potential 25% increase in market value from Cosmos' current price.
ATOM/USDT 1-day chart
The bullish thesis would be invalidated by a breach below the recent swing low at $12.66, leading to a potential decline towards liquidity levels near the $11.00 region, resulting in a 17% decrease from ATOM's current market value.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
