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Is Cosmos (ATOM) Poised for an Upward Surge? Exploring Potential Price Targets

The price of Cosmos (ATOM) has surged from the middle of a long-term parallel channel, indicating decisive bullish signals. It is expected to continue rising in the near future.

Descending Parallel Channel

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.

In fact, the ATOM price has surged from the middle line of the channel two weeks ago and is in the process of forming a bullish engulfing pattern (green ellipse). Both are bullish signals, supporting the likelihood of a breakout.

The weekly RSI (Relative Strength Index) has risen back above the 50 level and is sloping upward, signaling that the bulls are in control of the market.

If a breakout occurs, the ATOM price could increase by 66.53% to a significant resistance level at $17.

atom-bounce
ATOM/USDT weekly chart . Source: TradingView

Short-Term Outlook

The daily chart shows that the ATOM price has broken above a descending resistance line, formed since the yearly high at $12.5 on December 26, 2023. This suggests that the correction phase may have concluded.

The daily RSI supports the possibility of further gains by creating a significant bullish divergence and breaking above the descending resistance line.

Therefore, the ATOM price appears poised to rise towards the channel’s resistance at $12.2.

ATOM/USDT daily chart . Source: TradingView

Conclusion

Technical indicators suggest that the ATOM price will ascend towards the channel’s resistance at $12.2 in the coming days. Breaking above this level could help the price rise towards the next resistance zone at $17.

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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