Cosmos (ATOM) price is trading in a long-term bullish formation and has managed to turn a psychological resistance zone into support. So how much can the ATOM price rise while all these details are getting better?
ATOM price has been trading within a descending parallel channel since September 2022. This is also known as a bullish pattern, which leads to breakouts in most cases. This shows that the bulls have an advantage as the price is trading within this formation.
In fact, after bouncing up from the support line of the channel during the week of October 16-22, Cosmos price managed to break above the middle line of the channel with a large bullish candle last week.
The weekly RSI (Relative Strength Index) has broken above the long-term descending resistance line and moved above the 50 level, supporting the potential for further upside. Therefore, ATOM price is likely to continue rising towards the channel resistance at $12.7. This level represents an increase of 20.79% from the current price.
The daily chart shows that Cosmos price broke through the psychological resistance zone around $10 and confirmed this level as support (marked by green arrow). This indicates a continuation of the previous upward trend.
The daily RSI is above 50 and rising, indicating that the bulls still have an advantage. Therefore, it supports the possibility of price increase from the weekly time frame and the path of least resistance is upwards.
Both price action and technical indicators suggest that ATOM price will continue to rise in the future. The potential target for this move lies at $12.7.