- Cosmos has broken out of a descending channel, hinting at a potential bullish reversal.
- Price is hovering around $4.19 while testing key support at $4.08.
- A move above $4.97 could open the path toward $5.50, $6.39, and possibly $9.25.
- Short-term hesitation suggests traders are watching for volume spikes or structural breaks.
Cosmos (ATOM) is beginning to show signs of a bullish reversal. After a prolonged downtrend, ATOM has successfully broken out of a descending channel on the daily timeframe, a development that often signals the beginning of a potential uptrend.
At press time, Cosmos is trading at $4.19, reflecting a slight 0.24% dip in the past 24 hours and a 1.86% decline over the last seven days. The coin’s 24-hour trading volume has dropped by 12% to $72.24 million, while its market capitalization stands at approximately $1.63 billion.
Despite the minor drop in price and volume, the recent breakout offers a promising technical setup for bullish traders.
Cosmos Eyes $9.25 After Breakout
The breakout from the descending channel pattern is a crucial technical milestone for ATOM. Historically, such breakouts signal the end of selling pressure and the beginning of a bullish trend. If this move holds, Cosmos could push higher toward significant resistance zones and eventually target the $9.25 mark.
The breakout comes as price tests a key support level around $4.08, which previously acted as a springboard for bullish momentum.
Cosmos faces multiple resistance zones on its path to recovery. The immediate resistance lies at $4.97, a key level that must be breached for bulls to establish control. A confirmed breakout above this level could open the doors to $5.50, followed by a stronger resistance at $6.39.
On the downside, critical support levels include $4.08, which is currently being tested, followed by $3.72 and $2.83. These zones have historically served as accumulation areas, attracting buyers during periods of low volatility.
Market Structure Remains Mixed
While the breakout appears promising on the daily timeframe, smaller timeframes are showing signs of hesitation. Sellers have shown renewed strength after the most recent support touch, signaling short-term indecision. As a result, traders are shifting their focus toward liquidity zones and potential structural breaks to assess the next big move.
The broader structure suggests a possible accumulation phase, but without a strong catalyst or volume spike, the market could remain range-bound in the short term.
Cosmos (ATOM) is currently at a critical juncture. The breakout above the descending channel has introduced a bullish narrative, but confirmation will depend on the price’s ability to hold above key levels, particularly $4.97. If buyers reclaim this territory, the path toward $5.50 and $6.39 becomes more realistic, with a midterm target of $9.25 on the horizon.
Related Reading | Injective (INJ) Flashes Bullish Reversal Signal at Historic Launch Zone