Cosmos is flying the bullish flag at an extraordinarily high level as the trade of the week comes to a halt.
The token has surged 18% in the past 24 hours, but has recovered massively by 60% in just five days. Earlier this week, ATOM came back along with other crypto assets and received support at $ 5. Meanwhile, the uptrend seems to be losing strength, touching $ 8.
Cosmos encounters a predicted hurdle as the correction implies
Cosmos price is generally moving higher in an ascending parallel channel since the September 2020 crash. The $ 3.8 support functioned as the local bottom that led to major strides in the past four months.
The break at the beginning of the week became more pronounced as the price fell below the middle limit of the channel. Several temporary support levels were skipped on the daily chart, including the 50 Simple Moving Average and 100 SMA. However, the 200-day SMA remained steady, allowing the bulls to recover and regain control.
The reversal of the decline pushed Cosmos to over $ 8 with more than 60% rally in five days.
Meanwhile, ATOM / USD is trading at $ 7.5 after entering the cap.
A daily close above the upper limit of the channel can see ATOM lead to gains up to $ 10. However, if the seller congestion at this level, coupled with $ 8, can continue to limit the movement, it will require a correction.
The data show that the number of mentions about Cosmos on different social media platforms increased by 89% in just 24 hours. This buzz around shows that investor interest and sentiment are increasing for this token.
However, increased interest is not necessarily a good sign for the uptrend to continue. When prices rise and the crowd begins to pay attention, a decline tends to come soon after. Therefore, increased crowd interest can be considered a leading indicator of a short-term price correction.