Cosmos Price Prediction: ATOM Colossal Bullish Comeback Rides On Key Technical Pattern Breakout

Last Updated July 23rd 2021
2 Min Read
  • Cosmos bounces off critical technical pattern support as 32.5% upswing builds.
  • ATOM firmly in the bullish hands while short-term technical levels recover.
  • Closing the day above short-term support at $26 is key to averting losses toward $20.
  • Cosmos exchanges hands 10% higher over 24 hours after giving a blind eye to the gradually spreading bearish wave in the market. The upswing comes after cryptos rocketed to higher price levels due to Coinbase stock listing on Nasdaq.

    As the Coinbase effect dwindles, crypto assets seem to be going back to the mundane trading action. However, ATOM bulls insist on completing a key technical pattern’s breakout target.

    Cosmos Inverted H&S Breakout Eyes $32

    ATOM trades at $27 after extending the bullish leg from the crucial support at $24. The uptick in price occurred following an inverted head-and-shoulders (H&S) pattern. Intriguingly, this pattern comes out incredibly bullish once confirmed.

    Significant upswing begins after cracking the resistance at the neckline. A rising trading volume confirms the breakout. For instance, Cosmos is expected to complete a 32% breakout target from the neckline support by trading new all-time highs of around $32.

    ATOM/USD Four-Hour Chart

    The same four-hour chart highlights other bullish indicators such as the Parabolic SAR. The indicator signals the asset’s general trend. When the parabolas (dots) move below the price, the trend flips bullish, as observed on the chart. On the other hand, overhead pressure tends to rise when the indicator flips above the price.

    ATOM/USD Four-Hour Chart

    Cosmos’s bullish outlook has been validated by the Moving Average Convergence Divergence (MACD) indicator. Since the beginning of April, this indicator has mainly been in the positive territory. Meanwhile, the MACD line (blue) still holds above the signal line, adding weight to the anticipated uptrend.

    It is worth mentioning that support at $26 is key to the ongoing uptrend. Therefore, buyers must sustain the price above this zone at all costs. If push comes to shove and losses extend, Cosmos will likely spiral to the next tentative anchor at $24. Note that other vital support areas to keep in mind include $20 and $18.

     

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