Cosmos Price Analysis: New Year Brings 30% Growth Opportunity In ATOM Coin
From November to mid-December of 2021, the Cosmos coin was under a correction phase. This pullback discounted the coin price by 53% when it plunged to the $20.3 support. Later, the price started recovering and formed a cup and handle pattern, more potential for this rally.
Cosmos Key technical points:
The last time when we covered an article on Cosmos on December 26th, the coin price was approaching the $33.5 resistance zone. However, the pair performed another pullback which retested the $26.5 support level.
The confluence of this horizontal level and 200 EMA supported the price to initiate a new rally. Moreover, the chart showed four consecutive strong green candles with a 38.2% growth that breached the $33.5 resistance level.
The crucial EMAs(20, 50, 100, and 200) bolster a bullish trend for ATOM. Moreover, the bullish crossover of the 20 and 50 EMA will accentuate the ongoing rally. The daily Relative Strength Index (63) validates the increasing bullishness in this coin.
The ATOM Price Would Retest The New Support Of $33.5
This lower time frame chart shows the recent recovery from $36.4 formed the handle portion of a cup and handle pattern. On January 1st, the coin gave a deceive breakout from the $33.5 neckline. Currently, the price is retracing to confirm this breakout, projecting a long entry signal for crypto traders. The coin price is currently trading at $3.54, indicating an intraday loss of 2.45%.
The important resistance levels for the ATOM coin are $39.1 and $44.5. As for the opposite side, the support levels are $26.5 and $22.2.
The Moving Average Convergence Divergence indicator confirms an increasing bullish momentum in this coin, where both the MACD and the signal lines are steadily advancing in the bullish zone.Source