On the last day, the Cosmos price burst out of its downtrend. Additionally, a huge surge in trade suggests that ATOM should go even higher.
Cosmos is trading at $ 13.60, up $ 1.40 (+ 10.64%).
Until recently, Cosmos, the project to solve the blockchain industry’s biggest problems, had some problems of its own. On June 22nd, its ATOM coin was trading at $ 7.82, 75% below its May high of $ 32.74.
Two weeks later, the Cosmos price has moved again by 75%. Only this time the cops will appreciate it.
The boom has added more than $ 1 billion in value to the ATOM coin. Subsequently, Cosmos’ market capitalization was raised to nearly $ 3 billion, placing it as the 30th largest cryptocurrency behind SHIBA INU tokens.
In addition, the price movement, coupled with the volume, signals that real purchases are taking place.
Technical outlook from ATOM
The 4 hour ATOM price chart shows that the coin has broken out of a descending trendline at $ 11.82. The line, which begins at $ 17.85 high on June 3, forms the descending top of a triangle pattern.
The downtrend is countered by a strong horizontal support level at $ 18.50. After the collapse of the crypto market on May 19th, Cosmos price never ended the day under this support.
Today’s rally broke the 50 DMA at $ 13.08. Next comes the significant 200-day moving average at $ 15.52. However, the confirmed break of this narrowing pattern suggests that the ATOM coin could outperform these indicators and test the 100-day moving average at $ 17.86. Interestingly, this also marks the climax of the knee-jerk jump on May 20 from the previous day’s low.
In addition, the rising volume adds weight to the bullish outlook.
As long as Cosmos price stays above the downward trend of $ 11.82, the technical outlook is positive. If ATOM loses support for the trend, it will invalidate my bullish thesis.
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Kosmos Price Chart (4-hour)
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