Cosmos Price Forecast: ATOM Struggles Above $40 Stopping Short Of The Record High At $45
- Cosmos defended support at $30, giving bulls a chance to flex their muscles at gains above $40.
- The approach to the ATH falters, leaving bulls disappointed and battling to keep the price above $40.
Cosmos held onto $30 during the crash this week. Some analysts were worrisome that the correction might hit $22.5, but bulls came up in large numbers, nullifying the bearish calls. With this support in place, ATOM has gained significant ground and currently sits above $40.
The recently achieved all-time high holds at $45. Closing the gap to this level would be highly bullish for ATOM.
Cosmos Makes Way To $45 As Investors Position Themselves For Another Rally
The green zone was the turning point from this week’s bearish to the ongoing recovery. Trading below this demand zone would trigger massive losses after sending panic to holders and traders. Moreover, recovery could have taken a lot of the buyers’ effort with the same area flipping into supply.
For now, bulls only need to worry about ensuring support at $40 stays intact. If the uptrend does not falter, ATOM will quickly rise to the record high at $45. A confirmed break beyond the ATH will bolster Cosmos into yet another price discovery mode.
At the same time, the Moving Average Convergence Divergence (MACD) shows that buyers are in the cockpit. As long the 12-day Exponential Moving Average (SMA) stays above the 26-day EMA, the odds will favor the bulls. The higher the MACD moves above the mean line, the stronger Cosmos’ momentum gets.
ATOM/USD Daily Chart
Despite the volatility experienced in the last few days, Cosmos has sustained the price above the moving averages. The 50 SMA crossed above the 200 SMA on September 10, forming a golden cross. This is a highly bullish pattern, suggesting that ATOM will consolidate at a much higher level. Besides, some prominent analysts and traders use the index to affirm the bullish grip on the price. At the same time, the golden cross can mark the beginning of a bull run.
The four-hour chart highlights a bearish building momentum due to the struggles to lift to $45. The Relative Strength Index (RSI) will cement the bearish outlook if it turns back to the midline. Closing the day below $40 may trigger a gains-trimming exercise toward $30.
ATOM/USD Four-Hour Chart
The 50 SMA, which currently holds at $36.5 will try to prevent losses from stretching further. More support is expected at the 100 SMA before Cosmos heads into the green demand zone between $28 and $31.