Cosmos (ATOM) broke out of its consolidation pattern and regained a crucial horizontal area. It is approaching a new record price.
Between December 4 and December 20, ATOM consolidated just above the $ 22 support area (green circle). This was a crucial level as it coincided with the retracement support level of 0.618 Fib.
Subsequently, it started a significant bullish movement which still continues. On December 23, ATOM came out of a descending wedge and validated it as support three days later. Subsequently, it resumed its bullish movement and recovered the $ 33 area, which should now serve as support. The closest resistance zone is created by the historic highs of $ 43.
The technical indicators on the daily horizon are bullish, supporting the continuation of the bullish movement.
The MACD, which is created by a short and long term moving average (MA), has just moved into positive territory. This is a bullish sign, suggesting that short term AD is faster than long term.
The last time the MACD went into positive territory was August 9 (green circle). It preceded a 240% move higher, leading ATOM’s current all-time high of $ 44.8.
The RSI, which is an indicator of momentum, is above 50 and close to going over 70. It is interesting to note that the last time it went above 70 (green icon) it was a short time ago. after AD has passed into positive territory. Therefore, it is possible that a similar bullish move will follow this time around.
Number of waves
Cryptocurrency trader @CryptoTony_ presented an ATOM chart, indicating that the token is bullish and will rise well to reach a new all-time high price.
When looking at the whole movement from the March 2020 low, it looks like ATOM is in the fifth and final wave of a bullish pulse (white).
The first potential target for this increase would be $ 59. It is created by the 1.61 length of waves 1-3.
However, it is possible that the bullish movement will expand. In this case, ATOM could rise up to $ 100, hitting the resistance line of an ascending parallel channel that has contained all of the bullish movement so far.
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