fxstreet.com
- Cosmos price recorded a downtrend break, followed by a breakout and subsequent retest of the $11.22 key level.
- ATOM could extend to the top of the range at $17.19 for a 30% swing trade.
- A break and close below $10.00 psychological level would produce a lower low, invalidating the bullish thesis.
Cosmos (ATOM), which set out to make blockchain technology less complex for developers with its modular framework that demystifies decentralized apps, could be the next token to rally as meme coins and g AI crypto coins surge.
Also Read: Cosmos price likely to bounce 10% as ATOM overcomes key resistance
Cosmos price confirms breakout
Cosmos (ATOM) price escaped the confines of a descending parallel channel on February 27, but the move proved premature on the three-day time frame. However, a subsequent move on March 1 materialized as the ATOM price managed to close above the channel.
With the March 4 retest on the 3-day chart below, Cosmos price could finally be ready for an extended move north, with the next possible stop being the top of the range at $17.19, levels last seen in September of 2022. Such a move would constitute a 30% climb above current levels.
The volume indicator shows large bars, suggesting a strengthening price trend. The northbound Relative Strength Index (RSI) also points to rising momentum, increasing the odds for further upside.
In a highly bullish case, Cosmos price could clear the $17.19 blockade, potentially extending to hit the $20.00 psychological level. This would denote a 50% climb above current levels.
ATOM/USDT 3-day chart
On the flip side, a rejection from the $13.16 roadblock could see Cosmos price retract, potentially retesting the $11.22 support. An extended fall could see ATOM price slip below the $10.00 psychological level. A candlestick close below this level on the 3-day time frame would produce a lower low, potentially invalidating the bullish thesis.