Cosmos (ATOM), known as the Internet of Blockchains, is demonstrating notable strength in the face of recent market fluctuations. The token has increased by more than 6% today and has achieved a remarkable weekly gain of around 17%. This performance sets it apart as a top contender while major cryptocurrencies like Bitcoin and Ethereum experience a slowdown.
Crucially, ATOM”s daily chart is revealing a promising harmonic pattern that may lead to further price appreciation in the near future. Technical analysis indicates that a Bearish Shark harmonic pattern is currently forming, which, while often associated with potential reversals, can also signal short-term bullish continuation as the price approaches the final “C” leg of the pattern.
The distinctive O–X–A–B structure of this pattern has already been established. Support was notably found around the B-point at $1.65, prompting a swift price rebound. Currently, ATOM is hovering around $2.28, showing signs of early stabilization following a recent sell-off. The price is consolidating just below the 100-day moving average, approximately $2.29, which acts as immediate resistance. A successful reclaim of this moving average would be a significant technical confirmation and could transform this level into new support, thereby bolstering the bullish outlook.
Looking ahead, the harmonic structure suggests that ATOM could aim for the $3.02–$3.35 range, identified as the Potential Reversal Zone (PRZ) of the Shark pattern. These targets correspond closely with key Fibonacci extensions: the 0.886 extension near $3.02 and the 1.13 extension around $3.35. Should positive momentum persist and overall market conditions remain favorable, ATOM might be poised for a substantial move, possibly around 40–45% from its current levels.
However, it is essential for bulls to maintain the $2.00 support level. As long as buyers can defend this zone, the bullish scenario remains intact. Conversely, a sustained dip below $2.00 would undermine the current setup and potentially delay any recovery prospects.
In conclusion, while Cosmos (ATOM) shows promising signs of upward movement, particularly with its current technical patterns, market participants should remain vigilant. The evolving dynamics in the cryptocurrency market necessitate careful observation and strategic decision-making.
Disclaimer: The insights and analyses provided in this article are for informational purposes only and reflect the author”s perspective, not financial advice. Technical patterns and indicators discussed are subject to market volatility and results may vary. Investors are encouraged to conduct independent research and make choices aligned with their risk tolerance.
About the author: Nilesh Hembade, the Founder and Lead Author of Coinsprobe, brings over five years of experience in the cryptocurrency and blockchain space. Since launching Coinsprobe in 2023, he has been delivering daily, research-driven insights through comprehensive market analysis, on-chain data, and technical research.
