Cosmos price delayed its advance due to the recent market crash, but bulls are resilient and have already begun the upswing.
Cosmos price began its multi-month consolidation forming lower highs and higher lows after surging nearly 530% since 2021. While the initial spike in ATOM’s market value created the flagpole, the range-bound move that followed is known as the pennant.
Together, the technical formation is known as a bullish pennant and forecasts an 85% bull rally, determined by adding the flagpole’s height to the breakout point at $22.62.
This move places Cosmos price at $41.66, a new all-time high.
Supporting this optimistic outlook is a 38% surge in ATOM price after yesterday’s dip. Such a quick reversion indicates that buyers are scooping the altcoin at a discount.
Although a decisive close above the upper trend line of the pennant at $22.62 will signal a breakout, a secondary confirmation will arrive after ATOM price clears the supply zone that extends from $26.18 to $28.64.
Surpassing the resistance level at $35.2 is crucial for Cosmos price to hit the intended target at $41.66.
ATOM/USDT 1-day chart
On the flip side, if the buyers get rejected at the pennant’s upper trend line or the supply zone, a move into the consolidation phase’s lower boundary seems likely. If ATOM slices through the demand zone stretching from $16.37 to $18.02 to produce a daily candlestick close below it, the bullish thesis will face invalidation.
Under these conditions, market participants can expect Cosmos price to start a new downtrend to $15.7, which is the low of yesterday’s crash or $15.10.