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Potential 60% Surge Anticipated for Cosmos (ATOM) Price in the Near Future

The price of Cosmos (ATOM) is breaking out of a long-term pattern, which could lead to a strong rally afterward. Will the breakout be successful?

Weekly Outlook

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.

Indeed, after bouncing up from the middle of the channel in the week of January 22 to 28 (green arrow), the ATOM price has surged and is currently in the process of breaking above the channel.

Trading volume has increased as the price rises, indicating that the bulls are buying at higher levels.

The weekly RSI is approaching the overbought zone and inclining upwards, supporting the potential breakout.

If the ATOM price breaks above the channel this week, it could rise by 59.66% to the next resistance level at $22.

ATOM/USDT weekly chart. Source: TradingView

Horizontal Resistance Breakout

The daily chart shows that the ATOM price has broken above the horizontal resistance zone at $12.5 on March 6. The breakout has created a large bullish candle with high trading volume, confirming the validity of the breakout.

The daily RSI has risen into the overbought zone but has not created any bearish divergence, indicating that the bulls are still in control of the market.

Therefore, the ATOM price could rise to the next horizontal resistance level at $15.5 in the coming days.

This would also increase the chances of the ATOM price closing the weekly candle above the descending parallel channel.

ATOM/USDT daily chart. Source: TradingView

Conclusion

The most likely outlook suggests that the price of Cosmos (ATOM) will continue to rise in the near future. The nearest target is $15.5 and higher towards $22.

The bullish outlook could be invalidated if the price breaks and closes below the $12.5 level on the daily timeframe.

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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