Key Takeaways:
- Cosmos’s ATOM started a major increase above the $12.00 resistance.
- A key bullish trend line is forming with support near $12.10 on the daily chart.
- The price might continue to rise if it stays above the $13.20 and $13.00 support levels.
Cosmos’s ATOM rallied over 25% in a day and surged above $15.00. The price could rally further if there is close above the $16.50 resistance.
Cosmos (ATOM) Price Gains Bullish Momentum
After a major decline in May and June 2022, cosmos’s price found support near the $5.50 zone against the US Dollar. ATOM formed a base above the $6.00 level and started a major increase.
There was a clear move above the $8.00 and $10.00 resistance levels. The bulls were able to push the price above the $12.00 level and the 50-day simple moving average (blue). This week, the price is up over 35% and gained nearly 25% in the past three sessions. The recent ethereum price rise also helped the crypto market in recovering higher.
Cosmos’s price 4-hours chart | Source: ATOM/USD on TradingView.com
There was a close above the 23.6% Fib retracement level of the key decline from the $33.29 swing high to $5.54 low. Recently, there was a sharp increase above the $13.50 and $14.00 levels.
The price spiked above the $15.00 level and is showing a lot of bullish signs. On the upside, an immediate resistance is near the $16.50 level. The next major resistance is near the $18.00 level. A clear wave above the $18.000 level could push the price towards the $19.50 and $20.00 resistance levels.
The 50% Fib retracement level of the key decline from the $33.29 swing high to $5.54 low is also near the $19.50 level to act as a resistance. Any more gains might send the price towards the $20.00 resistance.
If not, there could be a downside correction from the $16.50 zone. An initial support sits near the $15.00 level. The next major support is near the $12.50 level. There is also a key bullish trend line forming with support near $12.10 on the daily chart.
A close below $12.00 may perhaps start a strong decline. In the stated case, the price might even test the $10.00 support.
Overall, ATOM price is showing positive signs above the $15.00 resistance zone. If it clears the $16.50 and $17.20 levels, the bulls could aim a move towards $18 or even $20. Conversely, there might be a downside correction to $12.00.
