Cosmos Price Prediction: Bulls continue to dominate
- Cosmos price is up 10% on the week, showing bullish strength during the middle of February.
- ATOM could set up a move toward the $16.80 region in the coming days.
- Invalidation of the bullish thesis could occur from a breach below $12.76.
Cosmos price shows bullish strength during the middle of February. A profitable trade setup is likely to manifest in the coming days.
Cosmos price points north
Cosmos price displays strong bullish signals after enduring last week's congestive market behavior that garnered 3% of losses. The bulls have successfully reconquered the 8-day exponential moving average and are attempting to solidify the bullish narrative by crossing over the 21-day simple moving average as well.
Cosmos price currently auctions at $14.22 as a consolidation zone is taking place between the aforementioned indicators. The relative strength index (RSI), an indicator used to gauge the kinetic potential of a trend by assessing previous swing points, shows Cosmos price as bottoming in an ideal support zone. There's also a bullish divergence between the low mark at the support zone at $12.76 and January 18's low at $11.48.
Considering these factors, the Cosmos price appear to be in a healthy uptrend. The next bullish target is 20% above the current market value at $16.80. The target is untagged liquidity dating back to 2022 when Cosmos price lost support from the $17 region.
Invalidation of the bullish thesis could arrive from a breach below the recent swing low at $12.76. In doing so, the bears could induce a 20% decline targeting the RSI's divergent low at $11.48.
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.
