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.
ATOM technical outlook
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.
Cosmos price chart (4-hour)
Follow Elliott on Twitter.