Cosmos has seen an increase of more than 60% in one month. Let’s see the future prospects for the ATOM price.
Situation of the Cosmos (ATOM)
The price of Cosmos recently reached the $10 zone, the level put forward in the bullish hypothesis of the October 31 analysis. It corresponds to the last high point of its medium-term bearish structure. Unfortunately, the expected breakout of this level did not occur, thus leading to the start of a bearish phase. At the time of writing, the price of Cosmos is trading around $8.9. It is now above its 50-day and 200-day moving averages. This supports the idea of an upward trend reversal. Oscillators show persistent bullish momentum, although the appearance of some signs of weakness can legitimately sow fear among investors.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on Cosmos derivatives (ATOMUSDT)
The Cosmos Liquidation Heat Map indicates that the high liquidity areas closest to the current price are now below it. We can note the zone of $7.5 and $7. As the market approaches these levels, it could trigger a large number of orders, which, naturally, could increase the volatility of the cryptocurrency. Therefore, these areas are potentially attractive for investors.
Hypotheses for the course of the Cosmos (ATOM)
If the Cosmos price remains above $8.5, we could anticipate a bullish continuation up to $10.4. The next resistance to take into account, if the upward movement continues, would be the $13 threshold. At this stage, this would represent an increase close to +45%.
If the Cosmos price fails to hold above $8.5, we could consider a return to $7.5. The next support to take into account, if the bearish movement continues, would be around $7. At this point, that would represent a drop close to -21%.
Conclusion
The continuation of Cosmos’ upward trend demonstrates continued buying interest. However, this interest must intensify to truly counter the downward trend that ATOM has initiated. Therefore, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute previously established hypotheses. Beware of potential “fake out” and “market squeeze” in each situation. Additionally, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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