Cosmos (ATOM) Price Outlook: 22% Rally Sparks Breakout Optimism

Key Takeaways

• ATOM’s price collapsed from $10 to $3.62 between late 2024 and March 10 but has since rebounded.
• The cryptocurrency broke out of a stiff descending triangle while flirting near the $4.64 resistance.
• If buying pressure continues to rise, ATOM might rise toward the 0.618 Fibonacci level, as revealed here.
• Interested in buying or selling COSMOS ATOM? Read our review of the best exchanges to buy and sell COSMOS ATOM.

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 Breaks Bearish Trend

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.

Buying Pressure, Market Buzz Rises

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.

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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.