The Cosmos (ATOM) price could skyrocket to $ 10.00 if the bulls manage to hold prices above the ceiling of an ascending parallel channel.
Cosmos is one of the few altcoins that rose in double digits that day and hit new highs. Polkadot (DOT) is also up more than 30% to more than $ 14.00, while ChainLink is targeting the $ 20.00 mark after a 16% increase in the last 24 hours.
For Cosmos, trading with a bullish bias could help the price break above the $ 10 threshold in the coming sessions. This is likely to be the case if the bulls manage to close above $ 8.00 on the daily chart.
At the time of writing, the token is changing hands at just over $ 8.00, an increase of more than 29% in the last 24 hours.
ATOM / USD price outlook
Cosmos operates in an ascending parallel channel that emerged after breaking out of a contracted triangle pattern towards the end of December of last year.
The uptrend also comes after the bulls managed to regroup after a dip to find support at the lower bound of the parallel channel around $ 5.70. Previously, ATOM had fallen below the 100 SMA ($ 5.36) and hit lows of $ 4.98.
After crossing the upper limit of the previous channel, the bulls reached highs of $ 8.48. This helped establish support at $ 6.07. This was a previous level of horizontal resistance. Buyers are currently battling the downward pressure. But the stronger MACD and the rising RSI on the daily chart suggest that another bullish move is likely.
If we see a daily close above $ 8.00, the next target is $ 8.99. Bypassing this level, buyers can focus on $ 10.00.
The 4-hour chart also shows that the bulls are under increased pressure, as suggested by the candlestick pattern. However, both the RSI and MACD indicate that the bulls are in command. If ATOM / USD sustains above the previous resistance support line at $ 6.90 USD, the bulls have a chance to hit the set target (daily chart).
In contrast, the 50-day SMA ($ 6.25) and the 100-day SMA ($ 6.07) offer initial levels of support on the 4-hour chart. However, a greater presence of shorts at these levels could indicate a broader correction.
In particular, the hourly RSI is moving away from overbought conditions. The hourly MACD suggests a weaker bullish bias. However, the 4-hour and daily charts contain these technical indicators in bullish mode. This suggests that a short-term pullback could be an opportunity for the bulls to cool down.
However, if prices continue to fall, the main anchor is at $ 5.00. Further losses could result in the bulls attempting to defend their territory near a robust base of support indicated by the horizontal line at $ 4.50.