Cosmos price likely to bounce 10% as ATOM overcomes key resistance
|- Cosmos price has flipped the $9.83 resistance level into a support floor.
- ATOM could retest $9.33, allowing sidelined buyers an opportunity to accumulate.
- Investors can expect a 10% rally to $10.94.
- A twelve-hour candlestick close below $9.45 will invalidate the bullish thesis.
Cosmos (ATOM) price rallied 23% from $8.35 to set a local top at $10.94 on January 12. The recent breach from the ongoing consolidation suggests ATOM is likely going to climb and set up a higher high, kickstarting the uptrend.
Also read: Cosmos validators reject proposal to reduce token inflation rate to 0%
Cosmos price ready to move higher
Cosmos price crashed 33% between December 26 and January 3, creating the $8.35 to $12.60 range. Since January 3, ATOM has mostly stayed below this range’s midpoint, denoting a bearish dominance.
But the Cosmos price rallied 16% in the last six days has overcome a critical hurdle at $9.83 and set up a higher high, suggesting a potential reversal. Therefore, investors should expect ATOM to continue trending higher in the coming days.
A caveat to this bullish outlook is the potential buying opportunity that Cosmos price might provide come Monday. The start of the week always causes a minor pullback, which will be a key point to enter the markets, hoping for a bullish week.
Therefore, a retest of the $9.83 support level should likely see a lot of buying pressure that results in a recovery rally to the next critical resistance levels at $10.44 and $10.94. This move would constitute a 10% gain for traders.
ATOM/USDT 12-hour chart
On the contrary, if Cosmos price fails to hold above the $9.83 support level, it would indicate weakness for bulls. If the selling pressure remains high, resulting in a twelve-hour candlestick close below $9.45, it will create a lower low and will invalidate the bullish thesis.
Such a development could see Cosmos price potentially revisit the $8.86 foothold, roughly 6.30% away.
Read more: Cosmos community votes on proposal to push ATOM toward zero minimum inflation
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