The price action of the Cosmos coin, as shown in the chart, has reversed from a sustained retracement phase to a retracement.
On October 26, Cosmos was unable to overcome the high resistance level at $ 44.5 and entered a correction phase. This pullback pushed the coin’s price sharply to the 0.618 Fibonacci retracement level, which indicates an almost 50% discount to its value.
Then ATOM rolled back to strong support at $ 20, after which the price entered the recovery phase, breaking the decisive resistance level near the $ 25 mark.
For over three weeks, the price of the ATOM coin has fluctuated between $ 26 and $ 20, facing demand pressure from lower support during this period of consolidation and preparing for a bullish reversal.
This morning, the coin showed a long bullish candle with a gain of 13%, breaking through the confluence of critical resistance levels, which indicates an excellent opportunity for long trades in cryptocurrency.
Previous resistance levels:
- Horizontal level $ 26.2;
- 0.5 FIB level;
- 200 EMA on both daily and 4-hour charts.
At time of publication, ATOM is trading at $ 27.3 with an intraday profit of 8.5%. The trading volume in 24 hours is $ 980 million, which means an increase of almost 100%. According to CoinGecko, the coin is ranked 26th with a current market cap of $ 7.7 billion.
- The daily relative strength index (53) recently crossed the neutral line, supporting the ongoing rally.
- The ATOM coin tries to cross the 200 EMA line, providing a great edge for long term traders.
- The MACD indicator shows that both of its lines are steadily moving up towards the bullish zone, and the histogram confirms the progress with successive elongated green candles.
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