– Cosmos price bounces off the $10.90 support level, opening up the chances for a recovery rally.
– A mean reversion play would allow ATOM to tag the $11.42 hurdle, and in a bullish case, the range high at $11.94 would be the target.
– A four-hour candlestick close below $10.90 will invalidate the bullish thesis.
Cosmos price shows signs of
tight consolidation inside a range that was formed in late March 2023.As ATOM bounces off the range low, investors can expect it to tag the immediate hurdles.
Cosmos price ready to launch higher
Cosmos price has been
hovering inside the $10.90 to $11.94 range since it was formed in late March 2023.Since then, ATOM has deviated from the range high and range low multiple times.The latest sweep of the $10.90 level was followed by a quick recovery that hints at a potential upswing.
Investors can expect a mean reversion play to propel Cosmos price to tag the range’s midpoint at $11.42.In some cases,
this move could extend to tag the range high at $11.94.
An interesting outlook will arrive if Relative Strength Index (RSi) and the Awesome Oscillator (AO) manage to flip above the 50 and the zero levels, respectively.If done successfully, Cosmos price could flip the $11.94 hurdle and make a run for equal highs at $13.44.
ATOM/USDT 4-hour chart
On the other hand, if Cosmos price fails to go over the midpoint, it will denote a weakness in buyers’ strength.However, if ATOM flips the $10.90 support level into a resistance barrier, it will invalidate the bullish thesis.
In such a case, Cosmos price could slide lower to tag the $10.67 support level.
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