During the last day, the Cosmos price has burst higher, out of its downtrend. Furthermore, a huge increase in trading suggests ATOM should go even higher.
Cosmos is trading at $13.60, and up $1.40 (+10.64%).
Until recently, Cosmos, the project designed to solve the blockchain industries biggest problems, was facing some issues of its own. On June 22nd, its ATOM coin was trading at $7.82 and 75% below its May, $32.74 high.
Two weeks later, and the Cosmos price has had another 75% move. Only this time, it’s one the bulls will appreciate.
The upswing has added more than $1b in value to the ATOM coin. Subsequently lifting Cosmos’ market cap to almost $3 billion, which ranks it as the 30th largest cryptocurrency behind SHIBA INU Token.
Furthermore, the price action, twinned with the volume, signal that real buying is taking place.
The 4-hour ATOM price chart shows the coin has completed a breakout from a descending trendline at $11.82. The line, which begins at the 3rd of June’s $17.85 high, forms the descending top edge of a triangle pattern.
Countering the downtrend is a strong horizontal support level at $18.50. Following the May 19th crypto market collapse, the Cosmos price has never finished the day below this support.
Today’s rally has cleared the 50 DMA at $13 .08. Next comes the significant 200-day average at $15.52. However, the confirmed break of this narrowing pattern indicates the ATOM coin could exceed these indicators and test the 100-day moving average at $17.86. Interestingly, this also marks the top of the May 20th knee-jerk bounce from the previous day’s low.
Moreover, the increasing volume lends weight to the bullish outlook.
As long as the Cosmos price stays above the descending trend at $11.82, the technical outlook is positive. Therefore if ATOM loses the support of the trend, it will invalidate my bullish thesis.
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