Cosmos (ATOM) endured relentless battering between the last days of 2024 and Monday, March 10. During that period, ATOM’s price collapsed from $10 to $3.62.
But in the last seven days, the altcoin has held its ground as one of the top-performing cryptos, gaining 22%. In the first few days of the green candlesticks, speculation spread that the upswing might not last.
However, that is not the case, as ATOM consistently defied the odds. Technical indicators are flashing signs of continued strength, suggesting that the token could push higher.
ATOM’s price dropped to $3.59 on March 10, representing a 65% decline from December highs. The cryptocurrency’s value has recovered, and it is trading at $4.67 as of this writing.
A routine change in market conditions and a formidable confluence of buying pressure sparked this crucial bounce. According to the daily chart, the decline in ATOM forced the formation of a descending triangle.
This bearish pattern saw the altcoin hit lower highs amid a falling trendline and lower horizontal support, which restricted its breakout. But on Tuesday, March 11, things changed as ATOM broke above the upper trendline.
As a result, the token invalidated the bearish outlook. Furthermore, ATOM’s price is on the verge of breaching the $4.64 resistance.
Other indicators also appear to support the extended rally. For instance, the Relative Strength Index (RSI), as shown above, has crossed above the neutral line, indicating bearish momentum.
Likewise, the Money Flow Index (MFI) reading has also jumped. The rise in the MFI signifies rising buying pressure. This could push the Cosmos token price well above $5 if sustained.
From an on-chain perspective, Santiment data shows that the social dominance around cryptocurrency has also increased. Social dominance measures the level of discussion related to an asset compared to others.
It signifies a decline in conversation connected to the asset when it falls. However, in ATOM’s case, the reading has risen to 0.27%, indicating that the market is paying attention to it.
Should the trend continue, it could impact ATOM’s price positively in the short term.
ATOM Price Analysis: Fresh Upswing in Play
Looking at the ATOM/USD chart on the 4-hour timeframe, CCN observed that the token has risen above the 20-period Exponential Moving Average (EMA).
The 20 EMA allows traders to spot entry and exit points while identifying market trends. When the price is below the EMA, the trend is bearish.
However, ATOM’s price has broken above the 20 EMA (blue), indicating a bullish trend. If sustained, the altcoin’s value might continue to rise.
The Bull Bear Power (BBP) is also in the positive region, indicating that bulls control the price action. Should this remain the same, ATOM’s price might break the $5 overhead resistance.
This could drive the cryptocurrency’s value to $6.21, near the 0.618 golden ratio if validated.
However, if buying pressure fades, this prediction might not pass. In that scenario, ATOM might decline to $3.44.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
