Key Takeaways:
- Cosmos (ATOM) could gain 160% by Q1 2022.
- A confluence of bullish factors on both low and high time frame charts support the claim.
- Signs of absorbtion flash warnings.
YEREVAN (CoinChapter.com) – ATOM, the in-house token of Cosmos, the internet of blockchains, rallied 20% in the previous 24 hours and traded at $31.3 in the European session Friday. However, several technicals point at a bullish wave coming ATOM’s way in Q1 2022.
In detail, Cosmos printed a Bull Flag on the daily chart. The latter constitutes an accumulation period after a significant uptrend and restricts the price action between two parallel trendlines before boosting it again.
For example, ATOM soared 380% from July 21 to Sep 19 and peaked at an all-time high of $44.6. The digital asset has consolidated in a Bull Flag ever since. The pattern suggests another 100% rally coming up once Cosmos exhausts the formation.
Also read: Cosmos (ATOM) lost 20% in a day after hitting an all-time high; Bitcoin FUD at play?
However, Cosmos bulls could have more gains to celebrate, as ATOM also flashed an Ascending Channel on the weekly chart. The Channel features two parallel trendlines, enclosing the price action and preventing sharp breaks outside the pattern.
Also read: Top Five Cryptocurrencies to Put on Your Christmas List.
The Ascending Channel does not predict a particular vector. However, as long as ATOM charts within it, the Channel could be instrumental in predicting its possible price target for the upcoming weeks, as it has been since early 2020.
What’s ahead for ATOM?
Zooming out, a potential uptrend of 160% seems likely. If the long-term prediction pans out, ATOM could reach approximately $75.0 in Q1 2022. The digital asset could retest the Channel’s support in the upcoming weeks and start a new leg up, consistent with both formations.
As of publication, Cosmos ranked #30 with a market cap of over $7 billion, an 18% advance in a week. However, ATOM showed heavy centralization, according to crypto data website Messari.com, as the staked supply has reached over 63%.
Crypto analyst with the Twitter handle Pentoshi also commented on the digital asset, jokingly calling it the “cursed coin.” They also pointed out a significant support level at approximately $30.0 and noted how important it is for ATOM not to sink below it.
