Cosmos price flashes buy signal, nearly 20% rally for ATOM holders likely
- Cosmos price formed a range, extending from $9.37 to $12.50 in early November 2022, and has been trading inside it.
- The recent retest of the range’s midpoint could result in an 18% ascent to $12.87.
- The bullish divergence spotted on the RSI and the AO indicator support this theory.
- A breakdown of the $10.93 hurdle that creates a lower low will invalidate the bullish thesis.
Cosmos price is sitting at a critical level where buyers have a chance to take control. A closer analysis shows that ATOM bulls have been planning a comeback.
Also read: Cosmos Price Prediction: ATOM sets the stage for 20% move
Cosmos price edges closer to a breakout
Cosmos price has been trading between the $9.37 to $12.50 range since November 2022. Although ATOM bulls put their backs into it and attempted to exit this range in January 2023, it was a failure. Over the last two months or so, the altcoin has formed four lower lows.
A closer look at the Relative Strength Index (RSI) and Awesome Oscillator (AO) shows that these indicators have been producing higher lows. This disparity is termed “bullish divergence” and often results in the underlying asset rallying higher, which in this case happens to be Cosmos price.
A quick recovery above the range’s midpoint at $10.93 will be the first sign of bullish confirmation. Following a successful flip of this level into a support floor, Cosmos price will eye for a retest of the range high at $12.50 and subsequently the $12.87 hurdle.
In total, this move would constitute an 18% gain for investors from the current position of $10.83.
ATOM/USDT 1-day chart
On the other hand, if the bullish divergence fails to play out and Cosmos price does not move higher, it could signal that the overall selling pressure is high. In such a case, A breakdown of the $10.20 support level would invalidate the bullish thesis.
Such a development could see Cosmos price dive 8% to tag the range low at $9.37.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
