Atom Looking Good for a $10 Push

The Cosmos price has done well for the past few trading sessions, rising by 17 per cent in the past 3 days. Today, the cryptocurrency is up by 2 per cent. Prices appear to be on track to maintain their bullish trend throughout the session.

The cryptocurrency project, which boasts of being able to power an ecosystem of blockchains designed to scale and interoperate with each other, has, in recent weeks, leaned to the downside. This has resulted in a 33 per cent drop in June and a 42 per cent drop in May. 

The year-to-date data also shows Cosmos has trended downwards for most of the year. Since reaching its yearly price high in January, Cosmos (Atom) has been in an aggressive bearish move which has seen it lose 84 per cent of its value.

Cosmos Price Prediction

The chart below shows how Cosmos prices have traded in a descending channel since April. During that time, the prices have dropped by 80 per cent, which has seen Cosmos go from trading at above $33 to the current price of $6.9. 

The chart also shows the past few days being aggressively bullish. The current bullish push is also a bounce from the $5.88 support level, which was hit recently without prices being able to break to the downside. 

Therefore, it is likely that the current bullish trend is a signal for a trend reversal. This will mean a possible price level of $8.9 is likely to be hit in the next few trading sessions. I also expect the prices to break out of the resistance level to the upside. The move will set the prices at a possible trading price level of above $10. 

However, should the prices drop below the $5.88 price level, then my trade analysis will be invalidated. It will also mean a possible trend to the downside is still possible. The idea of a price reversal will also be over, because, at that level, a long-term bearish trend will have been established.

Cosmos Daily Chart