ATOM extends rally, surges above $2.10 with bullish momentum

Key takeaways

• ATOM extends its gains, trading above $2.10 on Wednesday, up over 8% so far this week.
• The technical outlook suggests a further upward rally in the near term

ATOM trading volume hits multi-month highs 

Cosmos Hub (ATOM) continues its bullish rally, currently trading above $2.10, up more than 8% this week. 

On-chain data reveals a positive outlook, with ATOM’s trading volume surging to $120.74 million on Wednesday, marking the highest level since early February. 

This surge in trading volume indicates growing trader interest and liquidity, further boosting ATOM’s upside momentum.

Santiment’s data suggests an increase in demand, with spot markets showing buy-side dominance and generally neutral conditions across other metrics, pointing to potential for continued upward movement. 

The rally comes after Cosmos Hub announced a new partnership with Injective. Starting soon, the USDC stablecoin from Injective will be integrated into the Cosmos Hub ecosystem. 

This integration ensures long-term support for USDC, solidifying the relationship for at least four years.

The partnership will enhance liquidity, cross-chain interoperability, and introduce a buyback mechanism for ATOM tokens. 

The Cross-Chain Transfer Protocol (CCTP) will facilitate one-signature transfers, with the protocol fees used to buy back ATOM tokens programmatically. 

This move is bullish for both Cosmos Hub and ATOM in the long term, as it strengthens the ecosystem and introduces new demand drivers.

Cosmos Hub price forecast: ATOM aims for $2.34 

The ATOM/USD 4-hour chart is bullish and efficient as the coin is outperforming the broader crypto market. 

ATOM is trading at $2.15 on Wednesday, marking a 8% increase this week. The token remains above key support levels, with the 50-day and 100-day Exponential Moving Averages (EMAs) at $1.90 and $1.97, respectively. 

This keeps the near-term bullish trend intact as ATOM pushes further away from its broken descending trend line.

The Relative Strength Index (RSI) has surged into overbought territory, currently around 75, while the Moving Average Convergence Divergence (MACD) line stays above zero with a positive spread, suggesting strong bullish momentum but cautioning against overextension.

If the bullish trend continues, initial resistance is found at the 200-day EMA around $2.34, followed by the 38.2% Fibonacci retracement at $2.39.

 A sustained break above this resistance zone could open the path to further gains, with potential targets at the 50% retracement near $2.63 and the 61.8% retracement level at $2.88.

However, if the market undergoes a correction, immediate support is seen at the 23.6% Fibonacci retracement at $2.09, followed by the 100-day EMA at $1.97 and the 50-day EMA near $1.90. 

A deeper pullback could occur if these levels are lost, with further support near the former trendline break area at $1.75 and the lower horizontal support around $1.65.

The post ATOM extends rally, surges above $2.10 with bullish momentum appeared first on CoinJournal.