Buyers Defend Support, Fueling Strong Rebound
Cosmos (ATOM) posted a notable rebound on Thursday, climbing sharply from the $4.20 support level to trade near $4.65, marking an 8% surge within hours. The move came after multiple failed attempts by sellers to push the token lower, highlighting the strength of the demand zone.
The 4-hour chart shows that ATOM bounced from the green support band around $4.20–$4.25, an area that has historically acted as a demand zone. Following the rebound, the price briefly touched $4.70, a level aligned with short-term resistance.
The next major obstacle lies near the $4.85–$4.90 resistance zone, highlighted in red on the chart. A breakout above this region could open the door for a retest of the psychological $5.00 level. On the downside, immediate support remains at $4.30–$4.20, while a deeper pullback could see ATOM revisiting the $3.95–$4.00 base zone.
“Cosmos holding its ground above $4.20 is a strong technical signal, as this area has repeatedly acted as a buyer’s zone,” BITXmarket analyst explained. “The sharp bounce reflects growing confidence among traders, particularly as broader market sentiment steadies.”
ATOM’s rebound comes in line with improved activity across altcoins, with several tokens finding support after recent pullbacks. Volume spikes during the bounce suggest renewed buying pressure, potentially setting the stage for further gains if market conditions remain favorable.
For now, as long as Cosmos maintains its footing above $4.20, the bullish structure remains intact, keeping traders focused on the $4.90 breakout zone as the next critical target.
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.