ATOM prevented a breakdown after a crucial bounce on March 11, surging past a vital resistance area next week.
ATOM also created a long-term bullish pattern, an early sign of a potential bullish trend reversal.
Yesterday, eToro announced it was adding Cosmos and Polkadot to its crypto staking options , which is positive news for both cryptos.
Shortly after the news, ATOM increased and is close to confirming its bullish trend reversal. Let’s examine the charts and see how likely this is.
ATOM’s Bullish Pattern
The ATOM price has created a double bottom pattern between September 2024 and March 2025.
The double bottom is a bullish pattern, leading to bullish trend reversals most of the time.
ATOM created it at the critical level of $4, a breakdown below which could take the price to lows not seen since 2020.
Furthermore, the second bottom nearly created a bullish engulfing candlestick (green icon), though ATOM barely failed to close above the previous week’s high.
Technical indicators are bullish, supporting the possibility of a trend reversal.
The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) generated bullish divergences (orange) alongside the pattern.
These make it more likely that the double bottom will materialize, taking the ATOM price toward the $6.50-$8 resistance.
ATOM Reclaims Support
ATOM’s daily time frame gives a positive outlook. Unlike the rest of the crypto market, ATOM created a bullish, engulfing candlestick on April 3 (green icon), reclaiming the $4.30 support area.
With the reclaim, the price confirmed that the March breakdown was a deviation, not a legitimate downward movement.
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Moreover, ATOM may have created an inverse head and shoulders pattern, where the bounce forms the right shoulders.
This bullish pattern often leads to trend reversals like the double bottom. Technical indicators give mixed readings. The RSI is 50, while the MACD is 0.
However, the price action in both time frames is sufficient for a bullish ATOM prediction.
If ATOM breaks out from the pattern’s neckline at $5, it could increase to the next horizontal resistance and $6.30, close to the lower limit of the long-term resistance.
ATOM Breakout Incoming
The Cosmos price defied the crypto market yesterday after eToro announced it would add the coin to its staking options.
ATOM has created bullish patterns in the long and short term. A breakout above $5 will confirm the trend reversal.
If one happens, the first resistance will be $6.30, followed by resistances at $6.50-$8.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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