Cosmos Price Analysis: ATOM Nurtures 110% Recovery From July Lows, Investors Speculate Takeoff To $32
- Cosmos price has not relented to sustain recovery mission, closing the gap at $20.
- Investors look forward to the ultimate rally to $32 (the all-time high) based on the improving technical picture.
Despite widespread corrections across the market this week, Cosmos sustained the sharp recovery from July lows at $9. Bulls have accrued over 110% in gains in the last three weeks. ATOM closed the gap to $20 on Thursday but retreated temporarily to allow bulls to consolidate the gains ahead of another breakout.
Cosmos Uptrend Still In Motion
While Bitcoin and Ethereum corrected this week, some selected altcoins carried on with northbound price actions. Cosmos joined tokens such as Solana and Terra, lifting higher, ignoring the faltering market.
Meanwhile, ATOM exchanges hands at $18.8 while bulls put up a fierce fight to close the day above $20. The Relative Strength Index (RSI) affirms the bulls’ influence on the price, suggesting that they are unrelenting in pushing the throttle forward.
A daily close above $20 will surmount the overhead pressure likely to start building under the same level. This will help Cosmos ignore the overbought conditions highlighted by the RSI.
An incoming bullish formation on the same daily chart will prepare the bulls for another stride. The 50 Simple Moving Average (SMA) will cross above the 100 SMA in the next session or a day. Although this is considered a bullish index, it is not a golden cross pattern, which requires the 50-day SMA to move above the 200-day SMA.
ATOM/USD Daily Chart
As Cosmos gets ready for another move above $20, Santiment data shows a spike in the number of mentions on social media channels. The social volume metric tracks crypto-related contented on 1,000 plus platforms, including Twitter, Telegram groups, and subreddits.
Cosmos Social Media-Related Mentions
A spike in this metric highlights heightened investor interest, likely to lead to increased uptake of Cosmos. With demand rising, price increase often follows.
However, the spike in social volume is often followed by a dip that tends to pull back on the crypto. Note that investors and speculators soon realize profits and sell to create another buying opportunity in the near term.
It is worth noting that failing to overcome the barrier at $20 may lead to a trend reversal. The 200-day SMA provides support at $17, which, if tested, will either allow a rebound above $20 or give way to declines to $15 (a previous resistance zone).