- Cosmos price has set up a falling wedge pattern that forecasts a 30% rally on a successful breakout.
- The upswing faces hurdles at $10.94, $12.50 and $12.87, so investors need to be cautious.
- A daily candlestick close below $10.20 will invalidate the bullish thesis for ATOM.
Cosmos (ATOM) price shows a lack of initiation from bulls, which has kept it subdued for quite some time despite the buy signal. It seems ATOM is on the cusp of ending its recent llull, increasing the chances of a breakout that could provide an opportunity for investors.
Also read: Cosmos price flashes buy signal, nearly 20% rally for ATOM holders likely
Cosmos price edges closer to a breakout
Cosmos price shows a clear falling wedge formation on the daily chart. This technical setup contains two lower highs and four lower lows. Connecting these swing points using trend lines reveals a falling wedge pattern.
The setup forecasts a 17% upswing to $13.86, which is obtained by adding the distance between the first swing high and swing low to the breakout point. Although Cosmos price has not breached the falling wedge setup, we can expect ATOM to breakout at roughly $11.83. ATOM trades at $10.46 at the time of writing.
However, for the breakout to occur, Cosmos price needs to overcome the $10.94 hurdle. Beyond the aforementioned blockade, ATOM will face two more resistance levels at $12.50 and $12.87. Only after clearing these levels can the altcoin hit its theoretical target at $13.84, which would represent a 32% increase from current price levels
ATOM/USDT 1-day chart
While the outlook for Cosmos price is optimistic, investors need to consider the delicate macroeconomic outlook and Bitcoin’s uncertainty. If things take a turn to the dark side, pushing ATOM to produce a daily candlestick close below $10.20, it will invalidate the bullish thesis.
This development could potentially knock Cosmos price down to retest the $9.37 support level.
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
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
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.