- Cosmos price holds in an ascending parallel pattern as an upswing to $16 looms.
- The technical picture draws closer to flipping bullish, especially if the MACD is considered.
Over the last three weeks, Cosmos price action has sustained an uptrend in the ascending parallel channel on the four-hour chart, while a break above a formidable barrier at $10.5 allowed bulls to gain complete control of the trend. Hence, ATOM was catapulted to $14 before making a minor correction to $11.
At the time of writing, Cosmos trades at $12.5 while bulls hold delicately to the immediate support at the 50 Simple Moving Average (SMA). The immediate upside has been capped by the ascending channel’s middle boundary resistance. For now, the primary goal is to overcome this boundary, a move that may validate the uptrend back to $14 and $16.
Why Cosmos price bullish outlook may hold longer?
The four-hour chart has a bullish signal emanating from the Moving Average Convergence Divergence (MACD) indicator. This technical tool is essential in the analysis as it follows the trend of an asset and measures its momentum.
Unlike the moving averages, the MACD sends out bullish or bearish signals. Realize that the 12-day exponential moving average on the Cosmos chart is about to cross above the 26-day EMA. At the same time, holding above the mean line (0.00) is indicative of the trend staying in the bulls’ hands.
ATOM/USD four-hour chart
Similarly, the Relative Strength Index (RSI) recoil past the midline has reinforced the aggressive bullish grip. Hence, a break into the upper band of the ascending channel is required to validate the uptrend and perhaps triggered more buy orders. With enough tail force, Cosmos will be on the way to achieving the near-term targets at $14 and $16, respectively.
It is essential to keep in mind a critical bullish signal from the SuperTrend indicator. This is a trend-following technical tool that overlays the chart just like a moving average. The SuperTrend incorporates the average true range with the aid of the prevailing volatility of the market to send bullish or bearish signals.
ATOM/USD 12-hour chart
A buy signal like the one on the Cosmos chart appears when the SuperTrend line closes the day below the price while changing the color from red to green. Cosmos will flash a sell signal when the SuperTrend closes the day above the price and flips from green to red.