ATOM Bears Losing Steam; Bullish Reversal Pattern Points to the $9 Target
- Cosmos (ATOM) is showing bearish momentum alongside the broader crypto market, influenced by recent volatility in Bitcoins price.
- A falling wedge pattern has formed on the daily chart, indicating the potential for a bullish breakout if buying pressure increases.
- Market analysts suggest ATOM could be positioned for a trend reversal, drawing increased attention from altcoin investors.
Cosmos (ATOM) is expressing a bearish trend with the overall market and showing signs of decline in its price due to BTCs recent price volatility. Its price over the last week is down by 13.38%, and over the last month it is down by 14.05%.
At the time of writing, Cosmos is trading at $3.97 with a 24-hour trading volume of $94.07M and a market cap of $1.55B. The ATOM price decreased by 2.10% in the last 24 hours.
Source: Coinmarketcap
Falling Wedge Signals Potential, ATOM Rally to $9
Crypto experts are looking to Cosmos (ATOM) after the token created a falling wedge formation on the daily chart, a bullish formation that might mark the bottom of its downtrend. The falling wedge, defined by converging price trendlines hinting lower, tends to be followed by sharp price spikes when accompanied by a breakout through resistance.
ATOM is currently hovering at wedge support, with a possible bounce from this point to a bullish reversal. If buying increases, levels of $5.40, $6.20, $7.25, and potentially as far as $9.00 are in view. Both technical resistance levels and levels based on Fib extensions are in view, indicating scope for extensive upside if momentum strengthens.
Source: X
This comes at a time when altcoin investors are looking for breakout candidates in shifting attitudes in markets. Cosmos, with an interoperable blockchain system supporting an active pool of developers, is likely to regain investor interest if it delivers the breakout. Traders are, however, advised to watch price action, with wedge formations also producing false breaks in volatile times.
Related Reading: Ethereum Inflow Hits 77,000 ETH: Bearish Trends and Market Uncertainty
Read more: https://www.tronweekly.com/atom-bears-losing-steam-bullish-reversal-pattern-points-to-the-9-target/
Text source: TronWeekly
