Why the ATOM price could double at some point in 2023

Cosmos price (ATOM) has confirmed the bullish bias mentioned at FXStreet in previous outlooks. As the market ascends, the real challenge now will be to find an entry point and mitigate risks along the way.

ATOM price taking the market by surprise

Cosmos price has displayed impressive trending behavior as the bulls have sparked a 32% uptrend move since the start of the new year. The newly established trend has gone nearly vertical, hinting that liquidity levels above will face a true challenge if market conditions persist.  

ATOM price currently auctions at $12.14. The Relative Strength Index, an indicator used to interpret market performance by comparing and contrasting swing points, shows the recent uptrend move could be a part of a much larger rally. The optimistic gesture was visible on December 30 when the RSI breached the oversold territory near 75 and retested the resistance level at 60 before rallying again into extended levels. This is a classical entry setup for sidelined bulls to enter the market using technical analysis and Elliott Wave theory.

As the price consolidates, Cosmos shows potential for a rally toward the $13 mark, which would be a 7% rise from its' current market value. The aforementioned price point is a level that has acted as a pivot point to the upside and downside in previous months throughout the summer and fall.

Traders should be looking for a pullback, presumably into the $11 and possibly $9.70, which are Fibonacci confluence zones from the summertime bull rally. If the market continues the behavior from the previous 200% rally, Cosmos could extend as high as $30 sometime in 2023. 

Invalidation of the shortterm trade idea would be a breach below the 8-day exponential moving average at $11.72. At the same time, the larger swing trade idea targeting $30 would depend on the uptrend’s origin point at $8.44 remaining untagged.