- If ATOM’s bullish head-and-shoulders pattern breaks the key resistance, a 100% price surge is expected.
- The larger timeframes suggest that the token’s price will continue on an uptrend.
- Although ATOM is currently up by 2%, the price action trend is still positive and the volume is strong.
After analyzing where Cosmos’s ATOM token has been in the cryptocurrency market, prominent market analyst “World of Charts” on X has a positive view on where the digital asset is headed. The analyst’s posts suggest that ATOM will further increase in value.
The analysis centers on the token’s recent formation of a bullish head-and-shoulders pattern, a technical indicator preceding upward price movements, which has been confirmed.
Source: X @WorldofCharts
According to World of Charts, ATOM is now approaching an important neckline resistance. The analyst expects the crypto asset to break out above this level and surge toward the $10 mark within the next few days.
ATOM Displays Breakout Signals
World of Charts showed further analysis of ATOM, which suggests it is on the verge of a solid breakout. According to the analyst, a successful breach of the resistance mentioned above would cause a bullish wave and help push the price upwards by 100%.
Converging trend lines on the charts are a classic trait signaling an impending breakout. The combination of this technical setup, along with the bullish pattern observed, has led to expectations of a big rally.
This cryptocurrency’s price is likely to bounce off the support level, creating a sustained move above the resistance identified by the analyst. If that happens, investors can be confident the breakout will occur, and the analyst’s prediction of a substantial price increase will be proven true.
Cosmos’ native token is trading at $4.91 on CoinMarketCap and has increased by 2% in the past 24 hours. The chart shows that the price reached as high as $5.05 before reversing to the current level.
Source: CoinMarketCap
The general picture on larger time scales suggests that the token’s price will continue to experience an upward trend, albeit with minor corrections as well. Furthermore, the 24-hour volume of $225.3 million indicates a healthy amount of activity and a positive sign for ATOM’s price.
A Bullish Crypto Market
Santiment data shows that while the wider financial markets have dropped to an 11-month low since China’s reciprocal 34% tariffs on US goods, cryptocurrencies, including ATOM, have largely maintained resilience.
Also, US President Donald Trump has suggested that now is the perfect time for Fed Chair Jerome Powell to cut rates. Historically, rate cuts are usually bullish for all financial markets, including stocks, Bitcoin, and crypto.
In addition, Cosmos’ native token has an overwhelmingly positive sentiment on Coinmarketcap’s crypto community, with 85% of voters expressing optimism, which parallels the positive price action of this token.
Source: CoinMarketCap
