- Cosmos price is consolidating inside a bullish pennant pattern, targeting an 85% upswing.
- ATOM needs to clear the 12-hour supply zone ranging from $26.18 to $28.64 to establish a bullish outlook.
- A decisive close below $16.37 will invalidate the bullish outlook.
Cosmos price delayed its advance due to the recent market crash, but bulls are resilient and have already begun the upswing.
Cosmos price on the verge of confirming another rally
Cosmos price began its multi-month consolidation by forming lower highs and higher lows after surging nearly 530% since 2021. While the initial spike in ATOM’s market value created the flagpole, the range-bound move that followed is known as the pennant.
Together, the technical formation is known as a bullish pennant and forecasts an 85% bull rally, determined by adding the flagpole’s height to the breakout point at $22.62.
This move places Cosmos price at $41.66, a new all-time high.
Supporting this optimistic outlook is a 38% surge in ATOM price after yesterday’s dip. Such a quick reversion indicates that buyers are scooping the altcoin at a discount.
Although a decisive close above the upper trend line of the pennant at $22.62 will signal a breakout, a secondary confirmation will arrive after ATOM price clears the supply zone that extends from $26.18 to $28.64.
Surpassing the resistance level at $35.2 is crucial for Cosmos price to hit the intended target at $41.66.
ATOM/USDT 1-day chart
On the flip side, if the buyers get rejected at the pennant’s upper trend line or the supply zone, a move into the consolidation phase’s lower boundary seems likely. If ATOM slices through the demand zone stretching from $16.37 to $18.02 to produce a daily candlestick close below it, the bullish thesis will face invalidation.
Under these conditions, market participants can expect Cosmos price to start a new downtrend to $15.7, which is the low of yesterday’s crash, or $15.10.
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