The Cosmos [ATOM] crypto price is trading with mild bearish cues and bears are trying to defend the supply zone to continue its dominance on the higher level. However, the chart pattern is positive and the trend is favoring the bulls. Currently, the pair of ATOM/USDT was trading at $14.778 with an intraday loss of 1.43% and the 24-hour volume-to-market cap ratio at 0.0581
Will the ATOM price break out of the swing high?
On a daily time frame, Cosmos [ATOM] crypto price is on a steady rise and is continuing the upward movement by forming higher high swings. In the mid of January, ATOM price succeeded in reclaiming both the 50 and 200-day EMA. This derived a positive sentiment and indicates that the positional trend is reversed in the favor of bulls.
ATOM’s price took support at $11.00 and bounced back while forming a bullish engulfing candle showing that the responsive buyers are active at lower levels and the downside seems to be limited for the coming months. However, the price is near the resistance zone and it will be challenging for bulls to dominate at the higher levels. The immediate barrier for the bulls will be at $15.776, followed by the next hurdle at the $17.152 mark.
The technical indicators of ATOM are turning bullish and show that the bullishness might continue in the coming days. On the other hand, the price action indicates that the ATOM up-move looks overextended and it will be better if the price retraces back to the 50-day EMA or consolidate for some time before deciding the further direction. The MACD has generated a positive crossover which is favoring the bulls and the RSI at 64 denotes the strength of the bulls.
Summary
Cosmos [ATOM] price is picking up momentum and sustained above both the EMA which shows the bulls’ confidence at the lower levels. The technical analysis suggests that the price is in bulls’ grip and likely to break out of the swing high in the coming weeks.
Therefore, traders may look for buying opportunities near the 50-day EMA retracement for a better risk-reward ratio and aim for the target of $18.000 and above by keeping $11.00 as SL. However, if the price drops below $11.00 then bears can drag it down toward the $8.000 level.
Technical levels
Resistance levels: $15.776 and $17.152
Support levels: $11.000 and $8.523
