cosmos (ATOM) altcoin price continues to trade in a long-term bullish formation. When we look at the chart, the price has bounced from a Fibonacci retracement level that could be considered important a while ago, and continues to maintain its upward outlook in the short term.
Looking at the overall charts, the ATOM price has been trading within a descending parallel channel since September 2022. This formation is interpreted by many traders as a trend that may result in a breakout. This is a development that paves the way for bulls to follow the asset more closely.
Cosmos, which reached the resistance line of the channel in the last week of 2023, continues to consolidate at the middle line of the channel after the rejection. This line coincides with the 0.618 Fibonacci retracement support level of the previous upward move. Therefore, the bulls continue to maintain this support level.
The weekly RSI continues to trend above the long-term downtrend line, supporting the possibility of a bounce. A jump in the price may result in a movement towards $12.2 levels. If the price remains strong at this level, it will be the leading move of the 80% rise towards $17.
The daily chart shows that Cosmos price bounced from the middle line of the channel on January 23, 2024, forming a pinbar candle (bullish).
On the other hand, the daily RSI continues to improve its upward outlook by breaking the downtrend. This data is generally accepted as one of the signals that appear before the rise.
In summary, ATOM price will try to move towards $12.2 and $17 in the short term. Failure will occur with a close below the $8.7 level.