Cosmos (ATOM) Gains 14% After Higher Low — Bullish Momentum Building
ATOM spikes 14% after making a higher low on Nov. 4 compared to Sept. 6. More upside expected.
Key Takeaways
- ATOM could be entering a new bull phase.
- $6.50 is a key breakout target.
- Maintaining support above $4.20 confirms bullish momentum.
Cosmos (ATOM) has been in a prolonged bear market since its peak at $46 on Sept. 25, 2021, when it hit a low of $3.64 on Sept. 6, 2024.
Recent bullish signals suggest the possibility of a new upward phase, especially following a five-wave advance from this low.
ATOM Price Analysis
The price of ATOM reached an all-time high of $46 on Sept. 25, 2021, and has been in a bear market since then.
It fell to a low of $5.80 on June 18, 2022, the significant horizontal support zone. A recovery followed, but the overall structure remained bearish, leading to a larger sideways move.
On March 8, 2024, ATOM reached its yearly high of $14.60, slightly lower than the high of September 2022. It started to descend again and fell below its June 18, 2022, low to a new one of $3.64 on Sept. 6.
Because of this, we believe that the structure from June 2022 is still part of the corrective phase, with its last downtrend from March being the last one.
As such, ATOM could now be entering a new bull phase as there were first bullish signs.
ATOM Price Prediction
Zooming into the hourly chart, we can see that from Sept. 6 to 27, the price made a five-wave advancement to the upside, followed by a three-wave downtrend.
On Nov. 4, ATOM made a higher low of $3.85 and spiked by over 14% to the upside, currently being traded at $4.45.
According to our count, we could have seen the first two sub-waves of the larger five-wave pattern until Nov. 4, making the following increase its third sub-wave currently in development.
If true, ATOM is now on the path to a high of $6.50 at the 1.618 Fibonacci extension level.
This will be a breakout above the horizontal zone, and its subsequent correction for wave four should keep the price above it.
Should this play out, one more high to the $8 area will confirm the five-wave pattern and the starting bull phase.
In the short term, we first need to see a breakout above the descending resistance after a higher low, as the second sub-wave of the higher degree wave three should end above $4.20.
Failure to do so could question the bullish outlook.
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