Cosmos (ATOM) Flashes Symmetrical Triangle, Poised to Break Either Way

Cosmos [ATOM] recently rebounded from its long-term trendline support as the altcoin flashed a symmetrical triangle-like structure on its daily chart.

Cosmos [ATOM] recently rebounded from a long-term trendline support as the altcoin flashed a symmetrical triangle-like structure on the daily chart. This price action came amid a strong recovery as Bitcoin rallied towards a new all-time high above $75K.

Can ATOM sustain its bullish momentum, or will it face another pullback?

What to expect next?

According to CoinGecko, the altcoin was trading at $4.50 at press time, just above the 20-day EMA ($4.35) and the 50-day EMA ($4.47) – Both of which acted as key resistance levels. A decisive close above these EMAs could set the stage for further gains towards the $5.66 resistance level.

However, if ATOM fails to hold above these EMAs, it may face another decline towards the $3.65 trendline support. This level has held strong for the past few months.

The RSI stood at around 53 at press time, highlighting neutral market momentum with a slightly high buying pressure. A consistent hike above the 60-mark could indicate renewed bullish sentiment. On the other hand, a dip below the 40-level would signify a weakening trend.

Key levels to watch

Support Levels: ATOM’s immediate support lay near $3.65, aligning with the long-term trendline. A break below this level could lead to a deeper decline towards $3.11 – another critical support level.

Resistance Levels: On the upside, ATOM seemed to face immediate resistance at the 50-day EMA ($4.47) and $5.66. A successful break above these levels could propel the altcoin towards testing higher levels, depending on broader market sentiment.

As the dust settles, derivative data revealed the following.

A glance at the derivatives market revealed that trading volume dropped by 27.67% over the last 24 hours, suggesting cautious participation from traders amid recent market volatility.

Despite the volume drop, Open Interest increased by 1.39%, showing market participants maintaining their positions and potentially anticipating a breakout or trend reversal.

ATOM’s overall long/short ratio stood at 0.9736, indicating a relatively balanced sentiment. On Binance and OKX, the long/short ratios were quite bullish, at 2.864 and 2.68, respectively, suggesting optimism among traders.

Moreover, Binance liquidation data showed more short liquidations than longs, indicating that recent price movements caught bears off guard. Traders should also consider Bitcoin’s price action, as it will likely influence the broader market direction and ATOM’s movements.