Bitcoin Breaks $78,000, Cosmos (ATOM) Jumps… Is a Major Rally Beginning?

▲ Cosmos/Source: X ©

As the leading cryptocurrency Bitcoin breaks through $78,000, bringing a favorable wind to the overall virtual asset market, Cosmos Hub has started a full-fledged rally, backed by strong derivatives indicators and technical strength.

According to the investment media FXStreet on April 22 (local time), Cosmos Hub (ATOM) traded above $1.89 on Wednesday, recording a remarkable increase of approximately 8% this week alone. With Bitcoin's (BTC) surge boosting overall market sentiment, improved derivatives indicators suggesting new capital inflows, and positive technical analysis are combined, amplifying expectations for further short-term gains.

Data from the derivatives market already indicates a strong bullish bias. According to CoinGlass, Cosmos Hub's open interest surged from $125 million on April 15 to $137.18 million on Wednesday, showing a steady upward trend. This signifies a continuous inflow of new buying capital into the market. Furthermore, the funding rate also turned positive on Monday and then soared to 0.0093% on Wednesday, meaning that long-position investors betting on price increases are paying costs to short-position investors who anticipate declines, indicating a dominant expectation for a rise. Historically, such trends have acted as precursors to rapid price rallies.

From a technical perspective, Cosmos Hub is firmly holding the 50-day exponential moving average (EMA) at $1.82, establishing a solid support base. However, it remains below the long-term trend lines of the 100-day EMA at $1.98 and the 200-day EMA at $2.44, with a downtrend line currently formed around $1.93 acting as the primary upper resistance wall.

Upward momentum shows a clear recovery. The Relative Strength Index (RSI) on the daily chart has risen to around 61, and the Moving Average Convergence Divergence (MACD) histogram is also expanding in the positive territory, emitting positive energy. The media analyzed that these indicators are interpreted as bullish signals that significantly alleviate suppressed downward pressure rather than completely reversing the medium-term downtrend.

In the future, if Cosmos Hub strongly breaks through the $1.93 resistance, it could extend its rally to $2.44, where the $2.39 level and the 200-day EMA coincide, passing through the $2.09 Fibonacci 23.6% retracement level. Conversely, if buying momentum weakens and the horizontal support level of $1.84 and the 50-day EMA of $1.82 are broken, there is a coexisting risk of a fall to $1.65 and then to the previous low of $1.60.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*