Cosmos and Fantom moved back into the green and now sit close to their previous all-time highs.
Key Takeaways
- Cosmos and Fantom both suffered in the recent market downturn.
- Both cryptocurrencies appeared to have found a strong foothold that served as a rebound point.
- If the momentum persists, ATOM could rise to $45 and FTM to $2.90.
Cosmos and Fantom appeared to be turning bullish as buying pressure was building. Both cryptocurrencies could retest previous all-time highs if they maintain momentum.
Cosmos Holds Steady
Cosmos and Fantom began to bounce back from the latest crypto market crash.
Cosmos appeared to be making a swift recovery after rebounding from a critical support area. ATOM rose by more than 36% over the past four days and sits just a few points short of its previous all-time high of $44.45. Although the buzzy asset suffered a steep correction last week, it appeared to have found a stable demand barrier that served as a rebound point.
From a technical perspective, it bounced off the middle trendline of a parallel channel that it was contained in since September 2021. Every time ATOM has dropped to this technical formation’s lower boundary since then, the downtrend has reached exhaustion, before prices moved back to the pattern’s middle or upper edge. From this point, it has consistently faced rejection.
The recent rebound from the channel’s middle trendline suggested that ATOM was in an uptrend and could tag the pattern’s upper boundary at nearly $45. If the upswing will be strong enough, prices could break this resistance barrier and march toward a new all-time high of $66.
Still, the optimistic outlook depended on Cosmos’ ability to remain trading above the channel’s middle trendline. Breaching the support level could put the bullish thesis on hold, resulting in a drop toward the channel’s lower edge at around $20.
Fantom Finds Support
The recent downturn in the cryptocurrency market resulted in a 50% correction for Fantom. Still, the token appeared to have found a strong foothold.
The 100- and 50-day moving averages appeared to hold a great level of importance on FTM’s trend. These momentum indicators acted as significant support in the recent correction, preventing the token from incurring further losses. Fantom must now continue to hold above this demand zone for prices to recover.
Keeping the $2.26 level as support could see FTM rise toward $2.90. However, it will first have to close decisively above the $2.60 resistance level to encourage sidelined investors to re-enter the market.
It is worth noting that any signs of weakness around $2.26 could invalidate the optimistic outlook. In turn, this could result in another correction to the 200-day moving average at $1.67.