Cosmos (ATOM) price has recently broken out from a descending trendline, indicating a potential upward rally. If ATOM can retest and surpass the trendline, it could see a 45% increase to reach a resistance level of $17.19.
The positive momentum is further supported by the Relative Strength Index (RSI) and the presence of bullish activity in the ATOM market, as indicated by the green histogram bars of the Awesome Oscillator (AO) in the positive territory.
On-chain metrics also reinforce the bullish outlook for Cosmos. The rising Tether (USDT) market capitalization suggests an influx of fresh capital into the ATOM market. Additionally, the social dominance metric, which measures the number of ATOM mentions on social media, is also experiencing a significant climb.
However, if the $13.16 resistance level holds, there is a possibility of rejection and a downward movement for ATOM. A more concerning scenario would be if the price drops below the $10.00 psychological level, and the bullish outlook would be invalidated if the price closes under the $8.40 level, resulting in a 30% decrease from current levels.
Overall, Cosmos presents a buying opportunity for investors due to its bullish bias, with the potential for significant gains if the bullish momentum continues.