The Cosmos coin price action has shown a remarkable V-shaped recovery. The price is currently at the doorstep of the ATH resistance of $44.7, and with the formation of Cup and Handle, the coin could surpass this overhead resistance to continue its uptrend.
Cosmos Key technical points:
- The ATOM coin rally obtains strong support from the 200-day EMA
- The intraday trading volume in the Cosmos coin is $3 Billion, indicating a 27.8% gain.
Source- Tradingview
Previously Coingape predicted a 30% growth opportunity in Cosmos token. On January 1st, the coin price gave a deceive breakout from $34 resistance, with a significant pump in the trading volume. Followed by a one-day retest, the recovery rally continued to march forward
Within just two days, the price reached the All-Time High resistance of $44.7. The supply pressure at this level demanded a minor pullback from this coin before resting this overhead resistance.
This new rally in ATOM token has crossed above the crucial EMAs(20, 50, 100, and 200), reclaiming the bullish sequence. Moreover, the 20 EMA has started providing strong support to the coin price.
The daily Relative Strength Index (68) approaching the overbought region accentuates the ongoing bullish rally.
Cosmos Coin Shows A Cup And Handle Pattern In The 4-hour Time Frame
Source- Tradingview
This recent correction and recovery in ATOM coin price has revealed a Cup and Handle pattern. The neckline resistance for this pattern is the same as mentioned above, i.e., $44.7. The current price of this token is $42.5, with a 6% intraday gain.
The crypto should be patient till the price provides a proper breakout and sustainability above this level to grab an excellent long entry opportunity.
As per the Average directional movement index indicator, the falling slope projects the exhaustion of the previous short-term downtrend. Moreover, the $44.7 breakout should spike the ADX slope, projecting the bullish momentum rise.
Moreover, the Fibonacci extension levels can provide a decent idea for the important resistance levels above the $44.7 mark. These levels are $49.3 and $57.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/cosmos-price-analysis-atom-recovery-rally-challenges-the-44-7-all-time-high-resistance/