- Cosmos price continues to lose momentum with each bounce off the $10.55 support level.
- A continuation of the range tightening is likely to result in a volatile breakout to $13.29 and $15.44.
- If ATOM shatters the $10.55 support floor, it could trigger a crash to the $9.36 level.
Cosmos price approaches a long-standing support level for the fourth time in the last two months. With each bounce, ATOM has consolidated tighter, signaling that a breakout could catalyze a volatile move.
Also read: Cosmos Price Forecast: Things could get worse for ATOM before they get better
Cosmos price approaches critical levels
Cosmos price bounced off the $10.55 support level on May 11 and triggered a 26% rally. Following this, ATOM rallied 22% and 13% on the following two occasions it tagged the aforementioned foothold.
As Cosmos price revisits this level again, investors can expect cryptocurrencies, in general, to kick-start a new uptrend. If this move comes to pass, ATOM will likely target the $13.29 hurdle. A successful flip of this blockade into a support level could see the altcoin retest the $15.44 resistance level.
These two levels would require Cosmos price to rally 20% and 40%, respectively.
The confirmation of an uptrend can be seen in the Relative Strength Index (RSI) and the Awesome Oscillator (AO), both of which are hovering below the mean line. A flip of their respective mean levels on the daily chart would be a buy signal.
ATOM/USDT 1-day chart
On the other hand, if Bitcoin price suffers a negative impact due to the macroeconomic events, Cosmos price could tank as well. If ATOM slides lower and flips the $10.55 support level into a resistance barrier, it will invalidate the bullish thesis.
In such a case, Cosmos price could shed 11% and tag the next foothold at $9.36.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.