Cosmos Price Prediction: ATOM breakout could catalyze 50% rally
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●Cosmos price currently retests $10.08, a recently flipped hurdle into a support floor.
●A successful bounce here could kickstart a 50% rally to the next key weekly resistance level at $15.12.
●A weekly candlestick close below the $8.85 support level will invalidate the bullish thesis for ATOM.
Cosmos (ATOM) price has been trading around the $10 psychological level for nearly five weeks with no directional bias. But the last weekly candlestick close and the momentum indicator developments coupled with the market outlook indicate that a breakout rally is near for ATOM holders.
Cosmos price edges closer to an explosive rally
Cosmos price first encountered the $10.08 weekly resistance level in November and faced three rejections. The fourth weekly candlestick, however, managed to produce a decisive candlestick close above it. Due to Bitcoin’s recent slip-up, ATOM has also slid lower on the weekly timeframe and currently retests the $10.08 level.
If Cosmos price defends the aforementioned level and manages to close the weekly candlestick above it, it would be a bullish development. Adding credence to this optimistic outlook are the Relative Strength Index (RSI) and the Awesome Oscillator (AO) indicators, both of which are above the respective mean levels on the weekly timeframe.
Hence, a retest of the $10.08 level will likely be followed by an explosive rally in Cosmos price to the next key weekly hurdle at $15.12, which is exactly 50% away.
In a highly bullish case, Cosmos price could even extend the gains to retest the $21.68 hurdle. This move would bring the tidal gain from 50% to 116%.
ATOM/USDT 1-week chart, Source: TradingView.
While the outlook for Cosmos price is clearly leaning bullish, it is not confirmed yet. Considering Bitcoin’s bullish market structure on the daily timeframe has been broken, a sell-off could be waiting to happen. In such a case, a weekly candlestick close that flips the $8.85 support level into a resistance level will invalidate the bullish thesis for ATOM holders. This development could see Cosmos price visit levels around $7.50.
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* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
