Cosmos (ATOM) is showing signs of a potential trend reversal after breaking through a crucial resistance level, supported by a sharp increase in trading volume. In the last 24 hours, the token rose 1.23% from $4.05 to $4.10, signaling renewed buying interest and strengthening bullish sentiment.
Volume Surge Signals Breakout Confirmation
The breakout began on July 6 at 21:00, when trading volume surged to over 1 million units, nearly three times the hourly average. This sudden inflow of activity pushed the price above the $4.10 resistance level, which had previously capped upside attempts.
Throughout the 24-hour window ending on July 7 at 14:00, price action established a high of $4.13 and a support base between $4.03 and $4.05, indicating strong buyer conviction at lower levels.
Bullish Momentum Builds With Market Support
Despite some profit-taking near the session close, ATOM maintained a majority of its gains, settling at $4.09 while forming a higher low. This pattern typically signals continued upward momentum, particularly in low-volatility environments where volume plays a decisive role.
A micro-breakout also occurred between 13:57 and 13:59 on July 7, with the price moving swiftly from $4.09 to $4.10 on volume exceeding 20,000 units per minute. This confirms ongoing interest among short-term traders looking to capitalize on intraday volatility.
Technical Setup Suggests Potential for More Upside
- Resistance Level Broken: $4.10
- New Support Zones: $4.03–$4.05 and $4.07–$4.08
- Intraday Range: $4.07 to $4.13 (2.4% movement)
- Volume Spike: 3x average hourly volume
- Closing Price: $4.09, indicating sustained strength
ATOM’s recent move comes as Bitcoin approaches the $110,000 resistance level, impacting broader altcoin momentum. While the CD20 index reflected short-term market indecision, Cosmos appears to be breaking that trend with its clear volume-backed breakout.
Outlook: Bullish With Cautious Optimism
With technical indicators aligning in favor of the bulls and trading volume validating the move, ATOM appears well-positioned for a continued upside rally. Traders will be watching closely for a sustained hold above $4.10, which could open the path toward the next resistance at $4.20 and beyond.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.