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 warm breeze to the overall virtual asset market, Cosmos Hub has started a full-fledged rally, backed by strong derivative indicators and technical strength.

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

Data from the derivatives market already shows a strong bullish bias. According to CoinGlass, Cosmos Hub's open interest has been steadily rising, surging from $125 million on April 15 to $137.18 million on Wednesday. This indicates a continuous inflow of new buying funds 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 dominant enough to pay costs to short-position investors expecting a decline. Historically, such trends have acted as a precursor to sharp price rallies.

From a technical perspective, Cosmos Hub is firmly holding the 50-day exponential moving average (EMA) of $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 near $1.93 acting as the primary upper resistance.

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 line, it could extend its rally to $2.44, where the $2.39 level and the 200-day exponential moving average overlap, after passing the 23.6% Fibonacci retracement level at $2.09. Conversely, if buying pressure weakens and the horizontal support level of $1.84 and the 50-day exponential moving average of $1.82 are broken, there is also a risk of falling past $1.65 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.*