Cosmos (ATOM) Price May Increase by 20% in the Near Future
The price of Cosmos (ATOM) is trading within a long-term bullish pattern and has confirmed a psychological resistance zone as support. How far will it continue to rise?
The price of Cosmos (ATOM) has been trading within a descending parallel channel since September 2022. This is a bullish pattern, often leading to breakouts in most cases. This means that the bulls have an advantage as the price trades within this pattern.
Indeed, after bouncing up from the channel’s support line in the week of October 16 to 22 (green arrow), the ATOM price broke above the channel’s midline last week with a large bullish candle.
The weekly RSI (Relative Strength Index) broke above the long-term descending resistance line and rose above the 50 level, supporting the potential for further upward movement.
Therefore, the ATOM price may continue to rise towards the channel’s resistance at $12.7. This figure corresponds to a 20.79% increase from the current price.
Breakout of Significant Resistance
The daily chart shows that the ATOM price has broken above the psychological resistance zone at $10 and confirmed it as support today (green arrow). This marks the continuation of the previous uptrend.
The daily RSI is above 50 and rising, indicating that the bulls still have an advantage.
Thus, it supports the prospect of price increase from the weekly timeframe, with the path of least resistance being upwards.
Both price action and technical indicators suggest that the ATOM price will continue to rise in the future. The potential target for this movement is $12.7.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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