ATOM rally runs into the supply zone

The latest Cosmos price rally is facing its toughest test to date. ATOM was unable to redeem $ 30.00 in the last 6 months. Will it be different this time? While the burgeoning cryptocurrency market has lifted many assets to new record highs, ATOM Coin was a little below average. Given Cosmos (ATOM / USD) is up more than 50% in the last month, that says something. Even so, ATOM has not broken out to the top and remains around 47% below its February high of $ 47.09. In addition, it has now reached levels that reversed previous rallies.

ATOM price prediction

The daily chart shows that the Cosmos price hit its all-time high in February. However, by the time the broader market advanced in April and May, ATOM was already in a bear market. That bottomed out in May, about a week before the broader crypto collapse, when ATOM was trading at $ 13.23.

Since then, Cosmos has been trading largely sideways, although the recent uptrend has seen buyers return. However, the price hike has lifted Cosmos towards robust overhanging resistance.

A clear resistance band is visible between $ 27.00 and the June high of $ 30.27. This has been the scene of three failed escape attempts since March. Hence, it remains vulnerable until ATOM convincingly clears $ 30.27. Additionally, trend resistance is found at $ 27.40, adding to the significant upside barriers.

If Cosmos price breaks above $ 30.27 the outlook will get incredibly bullish. In this case, the path to the February high is clear. Until this happens, however, it may make sense to wait and see.

The price is supported by the 50,100 and 200 day moving averages ($ 21.74, $ 21.39, and $ 19.99, respectively). Additionally, a trend line at $ 21.50 adds price support below the market. As long as ATOM stays above the 200 days, the chances of hitting $ 30.27 remain intact. However, a drop below the DMA 200 would point to another failed rally and result in lower prices.

Kosmos Price Chart (Daily)

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