Cosmos (ATOM) Begins to Show Signs of a Bullish Reversal

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

Cosmos (ATOM) price is showing signs of a bullish reversal as it breaks out of a descending channel on the daily chart. This breakout could spark a potential uptrend, presenting an opportunity for bullish traders.

At press time, Cosmos is trading at $4.19, showing a slight 0.24% decrease in the past 24 hours and a 1.86% drop over the last seven days. The coin’s 24-hour trading volume has decreased by 12% to reach $72.24 million, while its market capitalization is at approximately $1.63 billion.

Cosmos Eyes $9.25 After Breakout

The breakout from the descending channel pattern is a crucial technical milestone for ATOM.

Historically, such breakouts indicate the exhaustion of sellers and the beginning of a bullish trend. If this move is sustained, Cosmos could rally further to reach significant resistance zones and ultimately target the $9.25 mark.

This breakout occurs as the price tests a key support level at $4.08, which has previously acted as a springboard for bullish momentum to return.

Cosmos faces several resistance zones in its recovery path. The immediate resistance is at $4.97, a key level that needs to be cleared for bulls to gain more control. A breakout above this zone could lead the price to test $5.50, followed by a stronger resistance at $6.39.

On the downside, critical support levels include $4.08, which is currently being tested, then $3.72 and $2.83. These zones have served as areas of accumulation, attracting buyers during periods of low volatility.

Cosmos smaller timeframes suggest some hesitation. Sellers have shown renewed strength after the most recent support touch, indicating short-term uncertainty.

As a result, traders are focusing on liquidity zones and potential structural breaks to anticipate the next significant move. The broader structure suggests a possible accumulation phase, but without a stronger catalyst or volume increase, the market could remain in a holding pattern in the short term.