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- 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.