- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.