The price of Cosmos surged for five consecutive days, achieving its highest point since March 3, driven by increased demand and a rise in futures open interest.
On Saturday, Cosmos (ATOM) reached a peak of $4.45, marking its highest price since March 4 and a 32% increase from its lowest point this year.
This rebound coincided with a recovery in Bitcoin (BTC) and other altcoins. Bitcoin climbed to $84,000, while Ethereum (ETH), Ripple (XRP), and Cardano (ADA) saw an uptick of over 1.45% on the same day.
Additionally, Cosmos’ price experienced an uplift as investors capitalized on lower levels after it fell to a significant support zone. Based on data from CoinMarketCap, its trading volume in the past 24 hours surpassed $153 million.
Likewise, the open interest for futures rose to $93 million, the highest level since February 2021. Open interest indicates the number of unfilled put and call option orders within the futures market. Generally, the rise in open interest suggests a bullish momentum in cryptocurrencies.
Cosmos is known for introducing the concept of the Internet of Blockchains, consisting of diverse, interconnected blockchains that function cooperatively. Key networks in this ecosystem include Osmosis, Celestia, THORChain, and Cronos.
Analysis of Cosmos Price
The increase in ATOM’s price can also be attributed to technical factors. The daily chart reveals that the token dipped to $3.4123 earlier in the week, a critical level that coincides with the low from September of the previous year — suggesting the formation of a substantial double-bottom pattern with its neckline at December’s high of $12.2.
Furthermore, Cosmos’ price has developed a falling wedge pattern, comprising two descending, converging trendlines. A bullish breakout is anticipated as these lines approach convergence.
Signs indicate the token may also be establishing a bullish divergence pattern. The Percentage Price Oscillator (PPO) has shown a steady incline after hitting a low of minus 9.95 earlier in the month.
Additionally, the Relative Strength Index (RSI) has slightly surpassed the descending trendline that has connected the highest points since December 13 of the last year.
Consequently, the combination of a falling wedge and double-bottom formation suggests that the coin could potentially rebound to the resistance level of $5.8783, which is aligned with the lowest swing from December 20 of the previous year.
This target represents an increase of approximately 32% from the current price. However, any decline below this month’s low of $3.4 would negate the bullish outlook.