Cosmos (ATOM) Price Analysis: ATOM Breaks Bearish Trend, Targeting $6.21

Cosmos (ATOM) endured relentless battering between the last days of 2024 and Monday, March 10. During that period, ATOM's price collapsed from $10 to $3.62.

Key Takeaways

Cosmos (ATOM) has been battered relentlessly since the last days of 2024, and Monday, March 10, saw the altcoin hit a low of $3.62.

But in the last seven days, the crypto has been one of the top performers, gaining 22%. It started showing signs of an uptick from the first few days of the green candlesticks, but some might say it’s time for the rally to pause.

However, that isn’t the case as ATOM has consistently defied the odds. Technical indicators are flashing signs of continued strength, which suggests that the token could push higher.

ATOM Breaks Bearish Trend

ATOM’s price fell to a low of $3.59 on March 10, which is a 65% decline from December highs. The cryptocurrency’s value has since recovered, and it is currently trading at $4.67.

This crucial bounce was sparked by a change in market conditions and a confluence of buying pressure. According to the daily chart, the decline in ATOM forced the formation of a descending triangle.

This bearish pattern saw the crypto hit lower highs amid a falling trendline and lower horizontal support, which restricted its breakout. But on Tuesday, March 11, things changed as ATOM broke above the upper trendline.

As a result, the token invalidated the bearish outlook. What’s more, ATOM’s price is on the verge of breaching the $4.64 resistance.

Other indicators also appear to support the extended rally. For instance, the Relative Strength Index (RSI), as shown above, has crossed above the neutral line, indicating bearish momentum.

Likewise, the Money Flow Index (MFI) reading has also jumped. The rise in the MFI signifies rising buying pressure. This could push the Cosmos token price well above $5 if sustained.

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From an on-chain perspective, Santiment data shows that the social dominance around cryptocurrency has also increased. Social dominance measures the level of discussion on an asset compared to others.

It signifies a decline in conversation related to the asset when it falls. But in ATOM’s case, the reading has risen to 0.27%, which shows that the market is paying attention to it.

Should the trend continue, it could impact ATOM’s price positively in the short term.

ATOM Price Analysis: Fresh Upswing In Play

Looking at the ATOM/USD chart on the 4-hour timeframe, we can observe that the token has moved above the 20-period Exponential Moving Average (EMA).

The 20 EMA helps traders spot entry and exit points while also identifying market trends. When the price is below the EMA, the trend is bearish.

However, ATOM’s price has broken above the 20 EMA (blue), which indicates a bullish trend. If sustained, the altcoin’s value might continue to rise.

The Bull Bear Power (BBP) is also in the positive region, which indicates that bulls are in control of the price action. If this remains the same, then ATOM’s price might break the $5 overhead resistance.

This could drive the cryptocurrency’s value to $6.21, which is near the 0.618 golden ratio if validated.

However, if buying pressure fades, then this prediction might not come to pass. In that scenario, ATOM might decline to $3.44.