Why Cosmos price is likely to rally toward $17 in February
- Cosmos price has been on a bullish trend, with a 2.5% increase on the day.
- ATOM shows potential to rally 15% toward the $17 liquidity zone.
- The bullish trend could be invalidated if a breach below $13 occurs.
Cosmos price continues to display strength as the uptrend seems unfazed by investors who may be taking profit off January's 70% gain. Considering the overall bullish stance in the crypto market, a 15% rally from today’s market value is a conservative estimate.
Cosmos price could go parabolic
Cosmos price could be on the verge of breaking out. At the time of writing, the bulls have taken control and reconquered the 8-day exponential moving average (EMA), which is a positive sign for the market. This subtle gesture of strength may catalyze a trending market in the coming days.
Cosmos price is currently trading at $14.93, up 2.5% on the day. The Relative Strength Index (RSI) dually supports the bullish sentiment as it enters support after breaching overbought conditions. As the price increases, the RSI maintains momentum, indicating that bulls are absorbing profit-taking transactions in the market. This makes the target price of $17 a likely outcome, offering a 15% rally from its current market value.
ATOM/USDT 1-Day Chart
However, traders should exercise caution and keep a close eye on the $13 level as it will play a critical role in the uptrend’s health. A steeper decline could occur if this level is breached, potentially targeting the $11 support zone. The Cosmos price would decline by 25% if the bears were to succeed.
This video shows how Bitcoin price moves could affect ATOM price
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.
