ATOM Price Falls from $5.10 to $4.20 – Bullish Breakout or Temporary Recovery at $4.55?

Do you wish to invest in Cosmos Coin but are unsure if it’s the right time to do so? Cosmos (ATOM price analysis) has shown extreme price fluctuations this week with many resistance and support levels. ATOM initiated a downtrend from a high of $5.10, breaking primary support levels before rallying near $4.20. ATOM is now showing bullish activity, with new breakouts above the resistance levels, which suggests the potential for a trend reversal. The big question is whether this rally will persist or encounter another pullback.

Analyzed by Meghana published on TradingView on March 1

ATOM Price Analysis from 23rd Feb 2025 to 28th Feb 2025

On 23rd February at 10:00 UTC, Cosmos’ recent price hit the high cost of $5.10 with strong resistance. After it could not break higher, the price began withdrawing, dropping to $4.90 by 14:30 UTC. On 24th February at 12:00 UTC, Cosmos’s recent price traded in a falling channel, breaking below $4.80 and establishing a downtrend. A breakout effort at $4.75 was thwarted, further lowering prices. 

ATOM reached a low of $4.50 on February 25 at 09:45 UTC before a marginal retrace to $4.65. Selling pressure persisted, driving the price back down to $4.40 by 16:30 UTC. By February 26 at 11:00 UTC, ATOM found temporary support around $4.30. The initial recovery attempt to $4.50 was refused at the resistance level, maintaining the price within a range-bound structure. ATOM broke through the $4.50 resistance on February 27 at 07:20 UTC and moved up to $4.75 by 14:30 UTC. 

Nevertheless, it experienced selling pressure at the crucial resistance level of around $4.80, resulting in a pullback. By 28th February at 05:40 UTC, ATOM dropped back to $4.30 but made a swift comeback, creating a bullish pattern. Buyers pushed the price back above $4.50, attempting a breakout above the previous resistance. The RSI is at 50-60, indicating weak bullish strength, while the MACD indicates a bullish crossover, which means upward movement is possible.

ATOM Price Analysis for 1st March 2025

On 1st March at 03:00 UTC, Cosmos’s recent price was trading around $4.55, showing early signs of a bullish trend continuation. By 08:30 UTC, ATOM tested the $4.60 resistance, with buyers attempting to push the price higher. At 12:40 UTC, Cosmos’s recent price broke towards $4.70, reflecting bullish sentiment. If the price can hold at $4.65, a rally to $4.80 and even $5.00 can be anticipated. But if ATOM is rejected at $4.70, it might drop back to $4.50, testing support before attempting another breakout.

Conclusion

ATOM has moved from a strong downtrend to a possible breakout stage. Having been rejected around $5.10, ATOM dropped sharply to $4.20 before rallying back to $4.60. To validate a bullish trend for ATOM price analysis, it has to hold above $4.60 and clear the $4.75-$4.80 resistance. Failure to clear the resistance would see another test of $4.40-$4.50 support. Traders should monitor a breakout above $4.70 or a breakdown below $4.50 to set the next significant price action. ATOM is now at a pivotal point; the next action could set its short-term trend.