Institutional volume spike fuels bullish momentum towards $5 psychological barrier
The Cosmos (ATOM) price recorded a notable 8% intraday surge, fueled by a significant rise in institutional trading volume and a decisive breakout above a critical resistance zone. This upward move positions ATOM for a potential test of the $5.00 target zone, a level closely watched by traders.
Over the past week, ATOM’s price action has displayed a classic recovery pattern. After forming a higher low near $4.40, the asset rallied aggressively, breaking through the $4.70 resistance band, which had acted as a ceiling since early August. The breakout coincided with a sharp increase in buy-side volume, signaling renewed confidence from larger market participants.
“The strong volume confirmation behind this breakout suggests that the move isn’t just retail-driven,” According to BITX market analyst. “If buying pressure sustains, the $5 mark is the next natural target, but traders should watch for potential profit-taking near that zone.”
Technical indicators also align with the bullish bias. The green support band at $4.40 remains intact, acting as a strong safety net for buyers. Meanwhile, the red resistance zone between $4.95 and $5.00 is expected to be the next key battleground. A successful close above $5.00 could open the door for further gains toward $5.20–$5.40, levels last seen in July.
On the downside, if momentum fades, ATOM may retest the $4.60–$4.40 range, where demand has consistently stepped in over the past month. The volume expansion, however, suggests that the market is currently more inclined towards accumulation than distribution.
In summary, ATOM’s latest move is more than just a price rally—it’s a shift in market structure backed by heavy buying interest. If bulls maintain control, the $5 breakout could be imminent.
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.